Volume Spread Analysis (VSA) is a trading methodology that analyzes the relationship between price action, volume, and the spread
✅ Is price at a major S/R level? ✅ Is volume significantly different from the last 10 bars? ✅ Is the spread telling a consistent story (wide/narrow)? ✅ Does the close confirm the signal (near high for bullish, near low for bearish)? ✅ Is the higher timeframe trend aligned (or at least not opposite)? vsa trading strategy pdf
| Concept | Meaning | |---------|---------| | | Professionals, institutions, market makers | | No Demand | Price rises on low volume → weak move | | No Supply | Price falls on low volume → weak move | | Effort vs. Result | High volume but small spread = effort with little result (reversal likely) | | Upthrust | Price tests a high but closes low on high volume → distribution | | Buying/Selling Climax | Extremely high volume, wide spread, reversing close | Volume Spread Analysis (VSA) is a trading methodology
Institutional players sell to retail traders at peak prices, often showing wide spreads on high volume. Markdown: A downtrend occurs as supply floods the market. VSA Trading Resources & PDFs ✅ Does the close confirm the signal (near
The rain drummed a steady rhythm against the window of Leo’s small apartment, a sound that matched the frantic beating of his heart as he stared at the red candles cascading down his screen. He was losing again. His indicators—a messy web of RSI, MACD, and moving averages—were screaming "oversold," yet the price continued to plummet.