What is VSA in trading?

What is VSA? VSA is a comparison of the distance between a period high and low to the total volume traded. That is, what is the difference between the closing price and the open price of the candle. Furthermore, how does that distance compare to the volume traded?

What is a VSA spread?

In the case of VSA, the word spread means the difference between the high and low prices in financial markets. Developed by Richard Wyckoff in the early 20th century and further popularized by Tom Williams, VSA aims to identify the activities of professional traders and understand market sentiment.

What should I do if I'm a VSA trader?

Practice: Use historical charts to practice identifying VSA patterns and signals before trading live. Never risk more than a small percentage of your account on a single trade. Always use stop-loss orders to manage your risk. VSA can be a complex methodology because it requires interpreting the interplay between volume, spread, and closing price.

What is VSA theory?

VSA is the study of the relationship between volume and price to predict market direction. Closing Price Relative to Range (Is the closing price near the top or the bottom of the price bar?) Who invented VSA? There are three big names in VSA’s development. Jesse Livermore spoke of a theory based on market manipulation.