Scan for VSA signals at key levels. For long setups: look for Stopping Volume at support, No Supply bars, Shakeouts, or Tests. For short setups: look for Buying Climaxes at resistance, Upthrusts, or No Demand bars.
This is the heart of VSA analysis. It compares the effort (Volume) with the result (Spread of the price bar).
Manage your exit using VSA principles. If you are long, continue holding as long as you see No Supply on pullbacks and demand coming in on up bars. When you start seeing No Demand, Effort to Rise failures, or signs of distribution, take profits. Similarly for shorts: hold through No Demand bounces, exit when you see signs of accumulation or Stopping Volume. vsa trading strategy pdf
Buy at the close of the No Supply bar or on a break of the high of the previous bar. Stop Loss: Just below the lows of the Selling Climax.
Volume Spread Analysis is a technical analysis methodology that studies the relationship between to determine market direction and identify the actions of "smart money"—professional traders and institutions. Unlike conventional technical analysis that treats volume as a secondary indicator, VSA views volume as the primary footprint of professional activity in the markets. Scan for VSA signals at key levels
[Distribution Phase (Selling)] /\ \ / \ \ Mark Down Mark Up / \ \ / \____________\ [Accumulation Phase (Buying)] Accumulation (Buying)
Classified relative to the last 20 to 30 bars as Ultra-High, High, Average, or Low. 4. Key VSA Signs of Strength (Bullish Signals) This is the heart of VSA analysis
These principles, while seemingly simple in isolation, become powerful when analyzed in combination and within the context of the larger market structure.
The key to mastering VSA lies in patience. The Smart Money takes time to accumulate and distribute. By waiting for the specific VSA triggers—Tests, Upthrusts, and No Supply/Demand bars—a trader can enter the market alongside the "Composite Man" rather than being used as liquidity for his exits.
Never enter blindly on a signal bar. If you spot a bullish No Supply bar (a narrow spread downbar on low volume), wait for the next bar to close higher to confirm that demand has officially taken control.
Do not short blindly. Look for the next 1–2 candles to print as a No Demand bar (a weak bullish candle with small spread and very low volume). This confirms professionals have completely abandoned the upward move.