Where the bar closes relative to its high and low. This tells you who won the battle between buyers and sellers during that session.
✅ 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 hinges on the concept that market makers need high volume to enter or exit large positions. vsa trading strategy pdf
VSA simplifies market mechanics into two fundamental Wyckoff laws. Law of Supply and Demand Prices rise. Supply > Demand: Prices fall.
When you see ultra-high volume on a wide-spread bullish bar closing near the highs, the effort matches the result. Smart money is actively buying and pushing the price higher. Bearish Divergence (Effort without Result) Where the bar closes relative to its high and low
Look for an Upthrust or No Demand bar testing a major resistance level or during a bounce in a markdown phase. Step 4: Execution and Risk Management
To analyze a chart using VSA, you must examine three specific variables on every price bar: ✅ Is volume significantly different from the last 10 bars
Available as a free PDF download from Trading Setups Review, this beginner-friendly guide explains VSA in intuitive terms and covers the No Demand bar and Stopping Volume patterns in detail. The guide answers fundamental questions including who invented VSA, why VSA works, and whether VSA works across all markets.