Disclaimer: Trading involves risk. This strategy is for educational purposes. Backtest before using live.
By [Your Name/Team] Introduction: What is VSA? Volume Spread Analysis (VSA) is a powerful trading methodology originally developed by Tom Williams, a former syndicate trader. Williams observed that large financial institutions ("the smart money") leave visible footprints in the market through the relationship between Volume , Spread (the range of a bar/candle), and Price .
Use a 200-period moving average. Only trade long above it, short below it.
| 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 |