Volume Spread Analysis (VSA) is a method that studies the relationship between volume, price spread (high–low), and closing price to infer the activity of professional traders (smart money). VSA aims to detect supply and demand imbalances, points of accumulation/distribution, and likely directional bias.
Successful VSA traders look for Validation and Divergence between volume (effort) and price (result).
Conclusion
Step 2: Wait for the Test. After the SC, price will often meander. Look for a "Test" bar—price dips down but closes strong on low volume. This confirms supply has dried up.
What is VSA?
Volume Spread Analysis (VSA) is a method that studies the relationship between volume, price spread (high–low), and closing price to infer the activity of professional traders (smart money). VSA aims to detect supply and demand imbalances, points of accumulation/distribution, and likely directional bias.
Successful VSA traders look for Validation and Divergence between volume (effort) and price (result). vsa trading strategy pdf
Conclusion
Step 2: Wait for the Test. After the SC, price will often meander. Look for a "Test" bar—price dips down but closes strong on low volume. This confirms supply has dried up. VSA Trading Strategy — Concise Guide Overview Volume
What is VSA?