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VSA Cheat Sheet

This document provides a cheat sheet on 16 popular volume spread analysis (VSA) signals, categorized as either signs of strength or signs of weakness. Each signal is defined in terms of its background conditions, favorable future, and unfavorable future. The signals include stopping volume, selling climax, demand overcoming supply, bag holding, shakeout, no supply, professional buying, and trap down move as signs of strength. Signals of weakness covered are supply coming in, buying climax, supply overcoming demand, end of rising market, upthrust, no demand, professional selling, and trap up move. Interpreting these signals based on volume and price patterns can help accelerate learning of VSA.

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Sagar Mallick
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Download as PDF, TXT or read online on Scribd
2K views

VSA Cheat Sheet

This document provides a cheat sheet on 16 popular volume spread analysis (VSA) signals, categorized as either signs of strength or signs of weakness. Each signal is defined in terms of its background conditions, favorable future, and unfavorable future. The signals include stopping volume, selling climax, demand overcoming supply, bag holding, shakeout, no supply, professional buying, and trap down move as signs of strength. Signals of weakness covered are supply coming in, buying climax, supply overcoming demand, end of rising market, upthrust, no demand, professional selling, and trap up move. Interpreting these signals based on volume and price patterns can help accelerate learning of VSA.

Uploaded by

Sagar Mallick
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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VSA Signal Cheat Sheet

By Dean

www.aniruddhadeshpande.com

[Accelerate your VSA learning using this cheat sheet of the 16 most
popular and effective VSA signals.]
Signs Of Strength

1. Stopping Volume
BG: Downtrend.
FF: Shakeouts AND Tests AND Test Of Demand area On Low Volume AND
narrow spreads.
UNF: High Volume up bars closing off the highs, Upthrusts, No Demand

2. Selling Climax
BG: Downtrend.
FF: Shakeouts AND Tests AND Test Of Demand area On Low Volume AND
narrow spreads.
UNF: High Volume up bars closing off the highs, Upthrusts, No Demand

3. Demand Overcoming Supply


BG: Downtrend.
FF: Volume is High expect shakeouts. Tests AND Test Of Demand area On Low
Volume AND narrow spreads. Volume is Low expect Higher prices, failure to rise
indicate Market NOT ready to go up yet.
UNF: High Volume up bars closing off the highs, Upthrusts, No Demand

4. Bag Holding
BG: Downtrend.
FF: Prices should rise immediately. Shakeouts AND Tests AND Test Of Demand
area On Low Volume AND narrow spreads.
UNF: High Volume up bars closing off the highs, Upthrusts, No Demand
5. Shakeout
BG – Background Conditions | FF – Favorable Future | UNF – Unfavorable Future
BG: SOS, Selling Climax, Stopping Volume.
FF: Tests AND Test Of Demand area On Low Volume AND narrow spreads.
Markets start to move sideways AND whipsaws it may be building cause for next
up move.
UNF: High Volume up bars closing off the highs, Upthrusts, No Demand

6. No Supply
BG: SOS. Minor sign Of weakness in an uptrend. Weakness in the BG reduces its
effectiveness.
FF: Next bar should be up. The small shakeout is Very bullish. The shakeout Can
also be On two bars.
UNF: High Volume wide spread down bar.

7. Professional Buying
BG: Downtrend.
FF: Shakeouts AND Tests AND Test Of Demand area On Low Volume AND
narrow spreads.
UNF: High Volume up bars closing off the highs, Upthrusts, No Demand

8. Trap Down Move


BG: Downtrend.
FF: Prices should rise immediately.
UNF: High Volume up bars closing off the highs, Upthrusts, No Demand
Sign Of Weakness

1. Supply Coming In
BG: After rising prices possible start Of distribution. Old top in BG possible
absorption Volume.
FF: Upthrusts, no demand bars, High Volume up bars closing off the highs OR on
narrow spreads.
UNF: High vol down bars closing off the lows, may need further testing. Prices
move above this area of supply, may come back to test it later, a Low Volume test
would be bullish.

2. Buying Climax
BG: Uptrend.
FF: Upthrusts, no demand bars, High Volume up bars closing off the highs OR on
narrow spreads.
UNF: Low Volume down bars OR High Volume down bars closing off the lows
suggests, the market is NOT ready to fall. High Volume up bars pushing through
the old highs represent absorption Volume.

3. Supply Overcoming Demand


BG: After the rising market, it is a start Of distribution. There is an Old top in BG
then possible Absorption Volume.
FF: Upthrusts, no demand bars, High Volume up bars closing off the highs OR on
narrow spreads.
UNF: High vol down bars closing off the lows, may need further testing.

4. End Of Rising Market


BG: Substantial up move.
FF: Test of this bar on narrow spreads AND Low Volume is further SOW.
UNF: No Supply bars OR down bars on High Volume closing off the lows show
sign
BG – Background Conditions | FF – Favorable Future | UNF – Unfavorable Future
of strength, needs testing. The weakness will NOT suddenly disappear.

5. Upthrust
BG: Weakness in BG is a must, can be High Volume up bars closing in the middle
OR no demand bars. There is strength in the background this may be tested OR
maybe False upthrusts.
FF: Expect lower prices. No demand adds to weakness. if we get a test down AND
we have weakness in the BG this may well fail.
UNF: No supply bar suggests a lack of selling pressure. Down bars on High
Volume closing off the lows show sign of strength, needs testing.

6. No Demand
BG: Weakness in the background OR minor SOS in a downtrend. Strength in BG
weakens its effect.
FF: Next bar should be down. Small upthrust is Very bullish. The upthrust Can also
be On two bars.
UNF: High Volume wide spread up bar.

7. Professional Selling
BG: Uptrend.
FF: Upthrusts, no demand bars, High Volume up bars closing off the highs OR on
narrow spreads.
UNF: Low Volume down bars OR High Volume down bars closing off the lows
suggests, the market is NOT ready to fall. No supply suggests a lack of selling
pressure.

8. Trap Up Move
BG: Uptrend.
FF: Prices should fall immediately.
UNF: High Volume down bars closing off the lows, Shakeouts, No Supply

Note: BG - Background conditions FF - Favorable Future UNF - Unfavorable


Future

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