Supply/Demand + Background
In this setup we require that the VSA signal is in the same direction as the background, to trade in the direction of the trend. For long trades:
1. Strong Background
2. Strong Signal (dot/circle/square below candles)
3. Enter in a buy-stop above the signal bar’s high for confirmation
Stop-loss: Set the stop-loss at the red dot.
Take-profit: Set the take-profit at the green dot.
Move stop-loss: When price reaches the blue dot (the indicator will automatically alert you), the stop-loss should be moved to break-even to protect profits.
Avoid taking a strong signal if there were Major Supply/Supply Signals at this price level before. The images below show examples of the setup.