Volume Spread Analysis Abcs Of Vsa Official

This is the basic economic principle. If demand exceeds supply, prices rise. If supply exceeds demand, prices fall.

Not every spring is a buy. Not every upthrust is a sell. You need confirmation. Wait for the next bar to validate the signal. For example, after an upthrust, wait for a down bar on high volume to confirm selling pressure. volume spread analysis abcs of vsa

| Element | What it stands for | Core VSA Principle | | :--- | :--- | :--- | | A | Analysis of Volume | Volume is the fuel of the market. It reveals the degree of participation and urgency behind a price move. | | B | Bar Spread / Range | The distance between the high and low of a bar shows aggression. A wide spread shows strong effort; a narrow spread shows little effort. | | C | Close / Position | Where the bar closes (high, low, or middle) relative to its spread reveals who won the battle (buyers or sellers) for that period. | This is the basic economic principle

A crucial concept in VSA is identifying weakness before the price drops. Weakness appears on up-bars. A crucial concept in VSA is identifying weakness