Represents the amount of activity or "effort" exerted by market participants.
Successful VSA trading is built on these foundational principles: vsa trading strategy pdf
A major price trend (effect) requires a significant period of preparation, such as accumulation or distribution (cause). Represents the amount of activity or "effort" exerted
Volume Spread Analysis (VSA) is a sophisticated trading methodology that analyzes the relationship between price, spread, and volume to identify the activity of "smart money"—large institutional traders. Originally developed by Richard Wyckoff and later refined by Tom Williams, VSA moves beyond lagging indicators to read the market's internal supply and demand dynamics. Core Components of VSA Originally developed by Richard Wyckoff and later refined
VSA relies on three essential data points for every price bar:
Traders use specific patterns to identify market turning points:
The difference between the high and low of a price bar, indicating the "result" of the effort.