Definition
Strength is evidence of professional buying, absorption, or an absence of supply. In VSA it commonly appears on down bars through selling climaxes, stopping volume, springs, tests, and no-supply action.
Market psychology
Declining prices attract fearful selling that stronger interests can absorb at advantageous levels.
Recognition rules
- Look first on down bars and reactions
- Notice rejection of lows or reduced selling
- Require bullish response or successful testing
Common mistakes
- Assuming every green bar is strength
- Buying before absorption or testing is confirmed
Teaching example
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Read a text alternative
Panic supply is absorbed near the end of a decline. The close off the low and immediate response are the evidence; high volume alone would not be enough.
- Market phase
- Accumulation
- Pattern
- Selling Climax
- Timeframe
- D1
Where does VSA often reveal strength?
Professional demand is often revealed while public selling pushes price down.