Chapter 4 Cause and Effect
Another important concept in VSA is the “cause and effect” principle. Professional traders’ actions in the market have a direct effect on the price and volume. By analyzing the data, it is possible to see the cause of the market’s movements and to predict the effect.
VSA is a powerful tool for traders and investors, but it is not without its limitations. The method is based on the idea that the market is driven by the actions of professional traders, but this is not always the case. The market can also be influenced by other factors such as economic conditions, political events, and natural disasters. Additionally, VSA is based on historical data, and the future is not always predictable.
in the next part we will be looking into the basic terminology and internals of understanding VSA better. Stay tuned!
