Volume Spread Analysis (VSA) is a market analysis methodology that examines the relationship between price spread closing price to identify the activity of institutional "Smart Money". The Core Pillars of VSA
Step 4: The Upthrust (UT). Price rallies back up toward the highs of the BC but fails, closing near the low on high volume. This is the final trap. vsa trading strategy pdf
Developed by Tom Williams and rooted in Richard Wyckoff’s theories, VSA relies on three fundamental laws: Volume Spread Analysis (VSA) is a market analysis
The premise was simple, yet contradicted everything his modern algorithms believed. It stated that volume is the fuel, and the spread of the candle is the engine. But most importantly, it was about the relationship between the two. This is the final trap
Price Spread (Range): The difference between the highest and lowest price within a single bar.
Selling Climax: Occurs after a downtrend with ultra-high volume and a wide spread, signaling that institutional players are beginning to accumulate assets from panicked retail sellers.