According to VSA, the smart money moves the market through four distinct phases:
Several trading platforms offer built-in VSA analysis tools. One educational VSA script on TradingView is "designed for learning and visual study" and automatically highlights well-known VSA events directly on charts, adding reference lines and colored moving averages to contextualize strength and weakness.
A down candle with volume significantly below average. This indicates that despite lower prices, sellers are not participating. The narrow spread combined with low volume reveals that professionals have no interest in pushing prices lower. VSA practitioners view No Supply bars as a signal to prepare for long entries once confirmation appears. A reliable VSA resource specifies that "No Supply bars reflect low volume on a down-move, showing sellers are losing interest". vsa trading strategy pdf
VSA originated in stock markets and works exceptionally well here because stock markets provide accurate, centralized volume data. Professional traders are highly active in stock markets, making VSA particularly effective.
AI responses may include mistakes. For financial advice, consult a professional. Learn more Share public link According to VSA, the smart money moves the
: Smart Money quietly buys large positions at low prices during a sideways range. This phase is characterized by low volume and narrow spreads as supply is absorbed.
VSA identifies institutional changes in supply and demand before price trends fundamentally shift. This indicates that despite lower prices, sellers are
Volume Spread Analysis is a proprietary market analysis method pioneered by Tom Williams, a former syndicate trader in the 1960s and 1970s. Williams built upon the foundational work of Richard Wyckoff, who introduced the concept of market manipulation and the "Composite Man" in the early 20th century.
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