One of the most vital laws of VSA is the law of . Effort is represented by the Volume. Result is represented by the Price Spread and direction. Bullish Harmony (Effort Equals Result)
and later refined by Tom Williams to identify the "footprints" of institutional "Smart Money". Core Components of VSA
This occurs after a significant rise in price. vsa trading strategy pdf
Look to enter long positions as this signals that Smart Money has stepped in to absorb the supply. 3. No Demand Bars
When you look at a bar, ask these three questions: One of the most vital laws of VSA is the law of
A down-bar with a narrow spread and ultra-low volume, closing near the middle or top.
An up-bar characterized by a narrow spread and ultra-low volume, distinctly lower than the previous two bars. This proves that smart money has zero interest in buying at these elevated prices. Without institutional backing, the uptrend fails. 6. Step-by-Step VSA Trading Strategy Bullish Harmony (Effort Equals Result) and later refined
Never trade a VSA bar in isolation. Look left on your chart. Is the broader background showing accumulation or distribution? Always align your trades with the dominant institutional bias. Step 2: Identify a Trigger Bar
Price surges upward during the session, making a new high, but collapses before completion.
A massive down-bar with ultra-high volume closing in the upper half of the bar. This signifies that institutions have completely filled their buy orders using the liquid panic selling of the public. No Supply Bar