It was originally developed by Richard Wyckoff in the 1930s and later refined by Tom Williams, a former syndicate trader, who wrote the seminal book Master the Markets . Williams realized that the markets were not efficient; they were manipulated by "smart money" (institutions, banks, hedge funds).
The most powerful pattern in the VSA PDF is "The Creek." This is analogous to the Wyckoff "Jump Across the Creek."
Before diving into the strategy, it is crucial to understand the philosophy. VSA is a methodology that studies the relationship between the of a candle, the spread (range) of that candle, and the closing price . vsa trading strategy pdf
To implement a VSA strategy effectively, traders often follow these steps:
This is one of the most reliable signals in VSA, appearing at the top of trends or during rallies. It was originally developed by Richard Wyckoff in
: Prices rise when demand exceeds supply and fall when supply dominates.
An up-bar with a narrow spread and low volume (lower than the previous two bars), signaling a lack of professional buying. No Supply Bar: VSA is a methodology that studies the relationship
| Signal | Volume | Spread | Close Position | Market Phase | Action | |--------|--------|--------|----------------|--------------|--------| | Stopping Volume | Very High | Wide | Near high | Downtrend | Buy | | Upthrust | High | Wide | Near low | Uptrend / Resistance | Sell | | No Demand | Low | Narrow | Near low | Uptrend | Sell | | No Supply | Low | Narrow | Near high | Downtrend | Buy | | Effort (up) / No Result | High | Wide | Near low | Any | Sell | | Effort (down) / No Result | High | Wide | Near high | Any | Buy |