VSA tells you what is happening now by looking at the raw transaction data.
VSA is the study of the relationship between three key variables:
This is the golden rule of VSA. If you see huge volume (high effort) but a very small price spread (low result), something is wrong. Usually, this means the "Smart Money" is absorbing the orders. For example, if volume is high on a small bullish candle at a resistance level, it likely means professionals are selling into the buyers, stopping the price from rising. 2. No Demand / No Supply volume spread analysis abcs of vsa
The ABCs of Volume Spread Analysis (VSA): Decoding the Language of the Markets
To master the ABCs, you must understand how these three pillars interact: A. Volume (The Effort) VSA tells you what is happening now by
Because every liquid market has volume and price, you can use VSA on stocks, forex (using tick volume), futures, and crypto. Conclusion: Reading Between the Lines
A narrow spread candle on low volume during a downtrend. This suggests the selling pressure has dried up, often preceding a reversal. 3. Stopping Volume Usually, this means the "Smart Money" is absorbing
A means the price moved significantly, suggesting high conviction.
If you want to stop guessing and start following the footprints of the giants, here are the ABCs of VSA. What is Volume Spread Analysis?
Mastering VSA takes practice, but once you learn to read the relationship between effort and result, you’ll never look at a naked price chart the same way again.