Place your stop loss slightly below the lowest point of the Selling Climax bar.

Traders look for specific bar patterns to identify institutional activity:

AI responses may include mistakes. For financial advice, consult a professional. Learn more Share public link

A narrow spread bearish candle on low volume. This shows that there is no selling pressure left in the market. It is an ideal long entry signal during an accumulation or markup phase. Upthrusts and Spring Formations

With distribution complete and no institutional support remaining, the market collapses. Panic selling ensues among retail traders. Wide-spread down-bars on high volume dominate the charts until the asset reaches wholesale prices again, restarting the cycle. Key VSA Signs of Strength (Bullish Signals)

Movements in the market do not happen in a vacuum. For a major move (Effect) to occur, there must be a build-up of orders or a period of preparation (Cause).

: Once supply is exhausted, professionals push the price higher. This is the confirmed uptrend phase where retail traders typically join.

VSA is based on :