Of Vsa [portable] | Volume Spread Analysis Abcs

Before diving into the ABCs, understand the philosophy: VSA operates on the assumption that the market is manipulated by professional operators ("Smart Money" or "Composite Man"). These professionals accumulate positions before the public catches on and distribute them when the public is most euphoric. VSA deciphers their footprint by analyzing how volume (participation) and price spread (volatility) interact. High volume on a wide spread tells a different story than high volume on a narrow spread.

In VSA, a single bar rarely tells the whole story. You must look for confirmation from the subsequent price action to validate your thesis. Volume Spread Analysis Abcs Of Vsa