Place your stop loss slightly below the lowest point of the Selling Climax bar.
Suddenly, a small candle appeared. It dipped below the previous low but closed back near its top on very low volume."The ," Leo whispered.
Panic selling by retail traders is completely absorbed by institutional buyers. The high volume shows massive activity, but the lack of a low close proves supply is being transferred into strong hands. 2. Testing for Supply vsa trading strategy pdf
: Institutional players sell their holdings to retail traders at peak prices. This often shows high volume on wide up-bars that fail to maintain momentum.
Indicates a balance of power or a transfer of assets between buyers and sellers. 3. The Concepts of Accumulation and Distribution Place your stop loss slightly below the lowest
Remember that VSA is not a "secret system." It is a skill that requires practice, patience, and discipline to develop. The traders who succeed with VSA are those who dedicate themselves to studying the principles, practicing their application, and learning from both their successes and their failures. The professionals cannot hide their footprints—you just need to learn how to recognize them.
Occurs during a downtrend. A wide-spread down bar prints on massive volume, but the next bar closes higher. This indicates that professional buyers have completely absorbed the selling pressure. Panic selling by retail traders is completely absorbed
While technical analysis often uses indicators like RSI, MACD, or Moving Averages, VSA strips the chart down to its purest elements:
The foundational idea is that by analyzing these three components together, you can infer whether supply or demand is in control, and whether professional traders are buying, selling, or standing aside.
Elias felt a cold prickle on his neck. He looked at the chart again.