VSA is built upon three core laws originally identified by Richard Wyckoff:
of a bar to determine the balance of supply and demand. Originally developed by Richard D. Wyckoff and refined by Tom Williams, its primary goal is to identify the "footprints" of Smart Money volume spread analysis abcs of vsa
: The size of an accumulation or distribution phase (the cause) determines the magnitude of the subsequent trend (the effect). The Law of Effort vs. Result : Volume is the effort, and price movement is the result. VSA is built upon three core laws originally
VSA is built upon three fundamental market laws derived from the work of Richard Wyckoff: The Law of Effort vs
For every effect (price move), there must be a cause (accumulation or distribution).
: Represents the amount of activity or "effort" put in by market participants.
Professional accumulation during panic selling; end of downtrend. Narrow spread up-bar + low volume (lower than previous two)