"Buy when there is no supply. Sell when there is no demand. Do nothing when the effort matches the result. And never, ever trust a wide spread without looking at the volume." Now, go chart hunting. The Smart Money’s footprints are everywhere—you just needed to learn how to see them.
By mastering the ABCs of VSA—ccumulation, B uying pressure, C limax, D istribution, E ffort vs. Result, and F ake breakouts—you stop being the prey and start trading like the predator. volume spread analysis abcs of vsa
In the world of technical analysis, most traders focus on price. They watch candlesticks, chart patterns, and moving averages. But price alone is a lie without volume. Imagine watching a movie with the sound turned off—you see the action, but you miss the emotional context. Volume Spread Analysis (VSA) turns the sound back on. "Buy when there is no supply
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Start small. Pick one asset (e.g., a liquid stock or index ETF). Apply these principles on the daily chart. Look for "no supply" after a drop and "no demand" after a rally. Over time, the hidden volume spread patterns will jump off the screen at you. And never, ever trust a wide spread without
Developed by Tom Williams, a former syndicate trader, VSA is based on a simple yet profound premise:
It transforms your chart from a random walk of price into a transparent dialogue between the Composite Operator and the crowd.