In VSA, signs that professional money is accumulating (buying) on weakness, preparing for a rally.
Deep Dive
Strength in VSA refers to signs that professional traders are buying (accumulating) despite falling prices or apparent weakness. This creates a divergence between what price shows (going down) and what smart money is doing (buying).
Signs of strength include: down bars on high volume closing in the middle or high (demand absorbing supply), No Supply bars (down moves on low volume suggesting sellers are exhausted), and tests (price dipping on low volume then recovering). These signals reveal accumulation behind the scenes.
Strength signals typically appear at the bottom of downtrends during the accumulation phase. While retail traders panic sell, professionals quietly accumulate positions. This accumulation eventually leads to the markup phase where price rises significantly.
Why It Matters
Recognizing strength helps traders identify accumulation zones for long entries.
Related Terms
- Spring — A false breakdown below support designed to trap sellers before a reversal higher
- Stopping Volume — High volume that halts a price decline, indicating institutional buying
- Absorption — When one side of the market overwhelms the other without significant price change
- No Supply — Low volume down bar indicating lack of selling pressure.