This comprehensive guide breaks down the core principles of VSA, its mechanical components, and actionable trading strategies you can implement immediately. 1. What is Volume Spread Analysis (VSA)?
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VSA hinges on the concept that market makers need high volume to enter or exit large positions.
A wide price spread on high volume suggests professional activity and strong conviction.
The difference between the high and low of a price bar.
After a "Stopping Volume" or a "Test" in an upward trend.
Signs of Weakness (SoW) occur when supply overcomes demand, typically at the top of a market cycle or during a bounce in a downtrend.