NEW! The Cengage brand now represents global businesses supporting learners from K-12 to Career. Learn more
This public link is valid for 7 days and shares a thread, including any personal information you added. This link or copies made by others cannot be deleted. If you share with third parties, their policies apply. Can’t copy the link right now. Try again later.
Markets do not trend without reason. An accumulation phase (the Cause) leads to an uptrend (the Effect). A distribution phase leads to a downtrend. VSA helps traders identify the "Cause" building in the background.
VSA does not look at the news; it looks at the volume and spread to determine whether buying pressure (demand) or selling pressure (supply) is dominating. 2. The Law of Cause and Effect volume spread analysis abcs of vsa
This occurs during a corrective bounce in a markdown phase. The price drifts higher, but the pathetic volume reveals that institutional money has zero interest in buying at these prices. Without demand, the market is structurally weak and primed to tumble further. Step-by-Step: How to Apply VSA to Your Trading Strategy
To read a VSA chart, you must look beyond standard candlestick patterns and focus on the anatomy of individual bars. This public link is valid for 7 days
[High] -------- | <- Wide Spread | |-- <- High Close | [Low] -------- [Ultra-High Volume]
Signs of Weakness (SoW) indicate that institutional investors are exiting longs, initiating shorts, or that buying demand has evaporated. 1. Buying Climax Can’t copy the link right now
Volume Spread Analysis is a method of analyzing financial markets by examining the relationship between volume, price, and spread. The core idea behind VSA is that volume and price action are interrelated, and by studying these two components, traders can identify potential trading opportunities.
