Chapter 3 Supply and Demand
The “supply and demand” principle is a fundamental concept in Volume Spread Analysis (VSA). It states that professional traders, also known as “smart money,” control the supply and demand in the market. They buy when they believe that the market will rise, and they sell when they believe that the market will fall. By analyzing the volume, price, and spread data, it is possible to identify when professional traders are buying and selling.
By analyzing the volume, price, and spread data, it is possible to identify when professional traders are buying and selling, and to predict the direction of the market. The supply and demand principle is a key concept in VSA and understanding it can help to improve your trading decisions.
