Once smart money has gotten rid of its positions, the mark-down phase begins. This is the most dramatic market phase, full of panic, characterized by wide-range down candles on high volume.
Characteristics of accumulation:
Professionals trigger retail stop-losses and trap breakout buyers before driving prices downward. 3. No Demand Bar Appearance: A narrow-spread up-bar. The Volume: Visibly lower than the previous two bars.
VSA works best on 1-hour, 4-hour, and Daily charts where institutional activity is easiest to see. vsa trading strategy pdf
Do not enter the market immediately on a high-volume climax bar, as volatility remains dangerously high. Instead, wait for a confirmation test.
Look for high-volume spikes that indicate institutional presence.
This is the distance between the high and the low of the price bar. It shows how far the price moved. Once smart money has gotten rid of its
Classified as Ultra-Wide, Wide, Average, or Narrow. Wide spreads mean institutional momentum; narrow spreads mean low volatility or active order absorption.
Place your stop loss just below the lowest point of the accumulation pattern or the climax bar.
Prevents retail traders from buying tops and selling bottoms by revealing actual supply and demand. Limitations VSA works best on 1-hour, 4-hour, and Daily
High volume (high effort) resulting in a wide price bar (wide result) is logical. It confirms a healthy, continuing trend.
Price moves on volume imbalances. Professionals drive price where they want liquidity, then fade the public’s reaction.