VSA Stratergy Basic Concepts
I use a 20-period simple moving average as our trend indicator. My
aim
is to use the concepts of “No Demand” and “No Selling
Pressure” to find trend retracement trades on GBP JPY with an SL of
100 pips and TP of 30 pips in a 10 Minutes Chart.
[1. No Demand on Up Bar: If the market rises with contracting spread
and volume, the market is not showing demand. Without demand, it is
not likely to continue rising.(To find “No Demand” bars: 1. Price
closed higher than the previous bar. 2. Volume is lower than past two
bars. 3.Spreads (Range) are narrow.)]
[2. No Selling Pressure on Down Bar: If the market falls with
decreasing spread and volume, the market is not interested in
selling.
Thus, it is not likely that the market will continue to fall. (To
find
“No Selling Pressure” bars: 1. Price closed lower than the
previous bar. 2. Volume is lower than past two bars. 3. Spreads
(Range) are narrow.)]
Best of Luck
KingCobra