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    VSA Distribution2

    Uploaded by

    ehayy
    The document discusses recognizing distribution patterns in markets. It provides three key distribution signals in the middle phase: 1. The uptrust - a bar with a higher high than previous bars that closes on the low, signaling weakness. 2. No demand - sideways movement on low volume near a market top before a downward close. 3. Supply coming in - a breakout on high volume that will be tested within two bars, or a false breakout called a serious sow that signals future downward pressure. The document emphasizes that these middle signals alert you to potential distribution but not confirmation, and that patience and watching volume is important to determine if the market will collapse, rise, or move sideways.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    VSA Distribution2

    Uploaded by

    ehayy
    306 views17 pages
    The document discusses recognizing distribution patterns in markets. It provides three key distribution signals in the middle phase: 1. The uptrust - a bar with a higher high than previous bars that closes on the low, signaling weakness. 2. No demand - sideways movement on low volume near a market top before a downward close. 3. Supply coming in - a breakout on high volume that will be tested within two bars, or a false breakout called a serious sow that signals future downward pressure. The document emphasizes that these middle signals alert you to potential distribution but not confirmation, and that patience and watching volume is important to determine if the market will collapse, rise, or move sideways.

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    VSA Distribution

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    VSA Distribution2

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    The document discusses recognizing distribution patterns in markets. It provides three key distribution signals in the middle phase: 1. The uptrust - a bar with a higher high than previous bars that closes on the low, signaling weakness. 2. No demand - sideways movement on low volume near a market top before a downward close. 3. Supply coming in - a breakout on high volume that will be tested within two bars, or a false breakout called a serious sow that signals future downward pressure. The document emphasizes that these middle signals alert you to potential distribution but not confirmation, and that patience and watching volume is important to determine if the market will collapse, rise, or move sideways.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    306 views17 pages

    VSA Distribution2

    Uploaded by

    ehayy
    The document discusses recognizing distribution patterns in markets. It provides three key distribution signals in the middle phase: 1. The uptrust - a bar with a higher high than previous bars that closes on the low, signaling weakness. 2. No demand - sideways movement on low volume near a market top before a downward close. 3. Supply coming in - a breakout on high volume that will be tested within two bars, or a false breakout called a serious sow that signals future downward pressure. The document emphasizes that these middle signals alert you to potential distribution but not confirmation, and that patience and watching volume is important to determine if the market will collapse, rise, or move sideways.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 17

    The ABCs of VSA:

    Distribution Part II

    By Lauren Snedeker
    Todays Objectives
    Recognize the middle sequence bar
    Recognize market tops & relative volume
    Determine collapse, rise, or sideways based on
    the indicator and volume
    Learn to be patient!
    Review from Part I
    Distribution is also known as the
    ________phase by the Smart Money

    Distribution is marked by two things:


    1. ____________________
    2. ____________________
    Review from Part I
    Distribution is also known as the Selling phase
    by the Smart Money

    Distribution is marked by two things:


    1. Ultra High Volume
    2. Ultra Wide Spread
    Using Gavins second book
    10 Sequences for Shorting include these
    Middle Signals:

    Upthrust
    No Demand
    Supply Coming In (not as common)
    The Upthrust
    Most common middle signal
    You have weakness behind you
    You approach an old top and close on the low
    The bar should have a higher high than the
    bar(s) behind it
    Closes on the low (looks like an L)
    Next bar should close down
    Upthrust on High Volume
    UpThrust on Moderate Volume
    No Demand near Market Top
    Approaches an old
    top
    Far less volume
    Sideways
    movement before
    Next bar closes
    down
    Gaps back down to
    Climactic Action
    area
    Supply Coming In
    A True Breakout: breaks through an old top on
    High Volume and will be tested within 2 bars
    ideally

    A False Breakout: (in this case) is a Serious


    SOW the more supply present the greater
    the future drag on prices and the need for
    testing of that supply
    Supply Coming In - SOW
    Middle Sequences
    They are not confirmation signals the market
    is going to fall
    They are alerting you to exit your long position
    They are alerting you to watch the volume
    They are alerting you to look at old tops
    You need confirmation ALWAYS
    Putting it all together
    The start of distribution in place
    You approach an old top
    You watch the volume
    You determine how weak the market is
    You wait for confirmation

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