More importantly Tom, what IS Volume Spread Analysis? So perhaps for the people here, you can explain what Volume Spread Analysis is.

Well for short, we call it VSA. To analyze a chart you have to look at the volume, and on that volume, you will want to notice what has the price done on that volume.

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Has it moved up, down or gone sideways? Those two ingredients will give you the answer to the market, in most cases. But if they are there in hindsight, they must be near at the live edge of the market.

Because you have read this in books and magazines, you would take this at face value and believe this to be true. In actual fact, up bars with excessive volume is weakness, as down bars with high volume shows strength. How can this be true? Well imagine you are an operator with a large block of stocks or shares to dispose of, how can you do this without putting the price against you? This would mean marking up the price to bring in buyers.

Rising prices create demand; demand does not create rising prices. If you see prices rising, you are more likely to buy than sell, as you would expect to make a profit as prices continue to rise, but if you cannot read volume, your image of these rising prices would distort the true picture as you would think it bullish, you would not see excessive volume indicating weakness.

Now what people have to realize is, that this is not using any mathematical formulae at all. They only appear automatically on a live feed without the intervention of human beings, if you get the logic right. First, you need to be able to analyze the market, which you find is very tricky in a way. You need to be able to pull that information and put it to some good use to turn it into money.

Now volume is the most important ingredient. Not all these professionals communicate with each other, they all work in isolation. But one thing is for sure - if they are making a bad trade, they will close out very quickly and switch their positions.

So volume is extremely important. Now when you see the varying amounts of volume; it may be high, it may be very high, it may even be average, or it can be low - it all means something very, very important. But that only gives you half the information. In other countries like America, they call it the range of the bar.

You can look at a 1-minute bar or a daily bar; all the principles are the same.

Volume Spread Analysis

Openings are usually used by people who are using mathematical formulae. So it definitely is a super way in backing up any other systems. You can even back up newspaper reports with it.

Just see when a newspaper is telling the truth or not. Tom, may I ask you another question? Many traders I talk to are using technical analysis, which you said is based on mathematical formulae.

There are many, many ways to analyze charts based on technicals. I know there are thousands of books on it. And many of the tools available, I know, will look back on the past of the price movement, to analyze and try to predict the future price movement. But often - from what I hear, the system will give them a green or red indicator based on the past price.

And as they enter that position, the market moves heavily against them. Now, can you explain to us why you developed Volume Spread Analysis?

And how is tom yeoman forex review so different from a standard technical analysis indicator? I was lucky enough to fall in with somebody who happened to be a part of a charter trading syndicate. I was really good at technical drawing. I use to draw these charts for them. They were huge charts, it would cover a desk, and you would put the high, low, close, and the volume. But I really had no idea of what it was about for at least two years.

But then one of them suggested, the owner suggested, that I take the Wyckoff course. They also paid for it. I studied the course for about a year, and then it all slowly started to fall into shape. Well I did very, very well and retired at 40, and went back to England.

Computers were just coming out at that time. I believe IBM just had their first desktop they were promoting because this was when Bill Gates got involved. So I wondered if the information and knowledge I had learned from the syndicate could be computerized, and the reason why I thought that was because I was sure if a computer could do it, it would remove the emotional factor from trading. Low and behold, I gave the info to the programmer and luckily, he was able to reproduce what I was telling him into a form and series of signals.

To recap, this program is completely unique to TradeGuider, and you had the good how to earn money recycling cans of spending so many years with the syndicate, learning how they traded. Stock market brokers in chennai I remember you telling me a story of how the market, or markets, can be somewhat manipulated and you get misinformation.

However, the 'Smart Money' cannot hide their intentions in volume. So the misinformation is what causes the emotional decision making process for each individual trader, which causes them to lose matlab stock market analysis because in affect what a market is doing is giving you information. You hear information about the market from many places, the TV, newspapers, friends, your broker, gavin holmes forex. Now that comes tongue-in-cheek, but can you elaborate on those two points?

Why the charts never lie and why is the retail public consistently losing money? And since VSA is here to help them, please elaborate on those two points. And of course, the markets do not want you there; they do not want you to make money. So they do everything conceivable to put you off. What they do if they see an opportunity is manipulate the market, and take full advantage of anything that happens to distribute sell or accumulate buy the market they are trading.

Different intensities, yes, but they all basically trade the same way. They have to accumulate a line, they have to mark it up and resell it. If you think about it, any business on the planet works that way. Huge amounts of money are in the stock market purely because they want to trade it and make profits from it. Not just the stock market, its all markets. Markets are made up of traders, individuals, banks, large institutions and syndicates.

What made you decide to give to the general public your knowledge? You were given very privileged knowledge being invited into a syndicate? The main reason was the advent of the computer. But with the advent of the computer and Internet, it made things far easier. You could only realistically track instruments; cattle or corn, or a stock.

So that was the reason. And I also had been retired; I was only 40 and still very, very active. Naturally, I still thought the subject was so fascinating, I decided to computerize it. And the thing is, you can rely on it. To end this particular session, many people will listen to this recording or read the transcript and some traders will be experienced yet still be losing money, some experienced traders will be gaining money, or some will be new and just starting, like I was 9 years ago when we first met.

What would be your advice to anyone wanting to make money in the markets? What would you advise them to do? I would advise first of all, how treacherous and dangerous the market really is. For the market to work, you need to have far more losers than winners. The nature and how the markets work to put you off. The single reason for that is the professional money. The professional market has to sell into up bars, which immediately deters people, and then to buy on down bars, which again, deters people.

When the professional money buy on a down bar, the news is most likely guaranteed to be bad.

And the same is true for the top. The news will always deter you from a perfect trade. Because by natural instinct, if you see good news, hear good news, and the market rises, you want to buy, and the same for if you see or hear bad news, and the market falls, you want to sell.

So Tom, thank you.

It will make sense to people who read this, but the secret is to look at the charts, then discern the reasons why. Look at where you lost money, look at where you got stopped out, and then look at why. The great thing about charts is that they leave patterns and they tell you a story. If you can read those patterns, you can tell the story in the future. And if you think about selling, you should be buying.

TOM WILLIAMS Below is an interview bewtween Tom Williams and Gavin Holmes G: But the two things that you told me that have stuck with me are: