To understand VSA, one must internalize three fundamental laws:

| Concept | Meaning | |---------|---------| | | Professionals, institutions, market makers | | No Demand | Price rises on low volume → weak move | | No Supply | Price falls on low volume → weak move | | Effort vs. Result | High volume but small spread = effort with little result (reversal likely) | | Upthrust | Price tests a high but closes low on high volume → distribution | | Buying/Selling Climax | Extremely high volume, wide spread, reversing close |

By analyzing these three components, you can identify whether the "Composite Operator" (the professional money) is accumulating or distributing.