About this Trading Strategy
The basic premise of our trading strategy is our acknowledgment that markets are fundamentally moved by supply and demand, mainly from traders with a large amount of capital. These are also generally more informed traders than the average trader. Fundamental information about the markets, such as interest rates differentials in Forex or companies earnings in stocks, are already known, and the action of professional traders upon this information can be seen on the chart. If they are bullish, the market will go under accumulation (organized buying), which can take between a few bars to 200+ bars (in Forex this is usually quicker than stocks), and if they are bearish, it will go through distribution (organized selling). So, needless to say, they usually sell when most retail traders are buying, as they need liquidity to dump their positions in the market, without making prices go against them (vice-versa for selling).
This activity shows up as patterns in the price and volume chart, and what VSA does is to identify them. Based on this concept, the strategy is developed to get in the same side of the market as the professional money, and the results achieved provide a comforting confirmation.
The guide is divided in chapters (about 15 pages), and includes information on how to use each of the indicators in the website. It can be read fairly quickly, and the charts and videos in between will show you the concepts in a visual fashion. Click the link below to read one of these strategies, and use the buttons to navigate between the different chapters: