VOLUME SPREAD ANALYSIS (VSA) is used successfully in the stock market. Read about VSA
HERE. The article shows a forex example. There is a debate that VSA doesn't work for Forex because Forex is NOT a consolidated market and dealers would NOT give you accurate tick/volume data because you could then determine their volume flow. Finally, SMART MONEY is not trading with retail brokers.
A more in depth read on VSA can be found
HERE
Others have coded indicators for VSA.
Someone sent me this
LINK.
Stopping Volume Pattern (Emini 5 minute)
Professional profit taking is occurring when the following conditions are met:
* Volume is greater than the previous bar's volume
* Range is less than the previous bar's range
* A new high is made (in an uptrend) or a new low (in a downtrend), and
* Closes off the highs (in an uptrend) or off the lows (in a downtrend)
The reduction in the bar's range is the real key. It shows that additional selling (in an uptrend) or additional buying (in a downtrend) is keeping the bar's range low. So Professional traders are taking profits and/or "fading" the current trend.
You will almost always see Stopping Volume patterns leading up to a market turning point. However, if the trend is strong it might take several Stopping Volume patterns in a row to slow the trend. Remember, most turning points are Stopping Volume patterns, but not all Stopping Volume patterns are turning points!
I modified and created some volume spread analysis indicators ( SEE CHARTS ABOVE )
Linear Mode
