How should VSA’s Alert System be used within the full system? The alerts should be used as explained in the VSA user manual (you can check the guide on the website for an introduction), but since congestions give extra information, that information can and should be used to do a more complete analysis, and ultimately to make the trades more reliable:

  • Avoid trading inside a congestion zone. These high activity areas are more subject to unpredictable movements
  • Congestion bars should be used to close positions, in case the market still hasn’t gone much farther in your direction
  • A congestion zone can confirm that a strong alert has a good chance of reaching the target
Avoiding Trade near congestion Support below confirmation Exit on congestion bars Resistance and congestion broken