Once smart money has accumulated enough assets, the mark-up phase begins when the top of the accumulation area breaks.
Spot forex presents a challenge because there is no central exchange and thus no true traded volume. Most platforms provide tick volume, which counts price changes as a proxy for actual transactions. ForexFactory and other communities debate whether tick volume adequately substitutes for real volume, and traders must decide for themselves whether their broker's volume data is reliable. One respected VSA guide notes that forex traders "need to decide if your source of tick volume is a reliable proxy for actual volume". vsa trading strategy pdf
| Concept | Meaning | |---------|---------| | | Professionals, institutions, market makers | | No Demand | Price rises on low volume → weak move | | No Supply | Price falls on low volume → weak move | | Effort vs. Result | High volume but small spread = effort with little result (reversal likely) | | Upthrust | Price tests a high but closes low on high volume → distribution | | Buying/Selling Climax | Extremely high volume, wide spread, reversing close | Once smart money has accumulated enough assets, the
According to Wyckoff and Williams, smart money moves through four distinct structural phases. Recognizing which phase a market is in prevents you from buying at the top or selling at the very bottom. Result | High volume but small spread =
The strategy relies on three primary variables measured on a bar-by-bar basis: