VSA (Volume Spread Analysis) Strategy โ Trade Like Smart Money!
If you're tired of following indicators that lag, it's time to study what smart money is doing. VSA reveals the real story hidden behind price and volume.
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๐ What is VSA?
VSA analyzes three key factors:
1. Volume โ How much activity?
2. Spread โ Candle range (High to Low)
3. Close โ Where the candle closed (top, bottom, or middle)
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โ Key VSA Signals
1. No Demand (Bearish)
๐น Low volume
๐น Narrow spread
๐น Close near high
๐น Next candle is bearish
๐ Interpretation: No buyers โ Price may fall
2. No Supply (Bullish)
๐น Low volume
๐น Narrow spread
๐น Close near low
๐น Next candle is bullish
๐ Interpretation: No sellers โ Price may rise
3. Stopping Volume
๐น Very high volume
๐น Wide spread
๐น Appears after a downtrend
๐ Interpretation: Smart money is stopping the fall
4. Buying/Selling Climax
๐น Ultra high volume
๐น Huge candle
๐น Often the final push in a trend
โ ๏ธ Interpretation: End of trend โ Reversal likely
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๐ง Trading Rules
1. Identify Trend Direction (use 200 EMA if needed)
2. Spot a valid VSA Signal (e.g., No Demand)
3. Confirm with next candle
4. Entry: Break of signal candle high/low
5. Stop Loss: Recent swing
6. Take Profit: 1:2 RR or nearest S/R level
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๐ก Extra Tips:
Combine with Supply/Demand Zones for higher accuracy
Look for Volume Spikes and traps
Avoid trading VSA in sideways/ranging markets
Use it with HTF structure confirmation
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๐ VSA = The language of smart money. Learn it, trade it, profit from it.
