Converge 2018

8 Sell VSA Signals

By Dean
Supply Coming In
Buying Climax
Supply Overcoming Demand
End Of Rising Market
Upthrust
No Demand
Professional Selling
Trap Up Move

8 Sell Signals
We track three things for each signal,
●
Background Conditions
●
Favorable Future
●
Unfavorable Future

Rules For Signals

Background - After rising prices possible start of a distribution.
Old top in the background possible absorption of supply.
Favourable Future - Upthrusts or no demand bars. High volume
up bars closing off the highs on narrow spreads.
Unfavourable Future - High volume down bars closing off the
lows, may need further testing. If prices move above this area,
they may come back to test this level. A low volume test would
be very bullish.

Supply Coming In
Supply Coming In

Stopping Volume
Background - Uptrend.
Favourable Future - Upthrusts or no demand bars. High
volume up bars closing off the highs on narrow spreads.
Unfavourable Future - Low volume down bars or high
volume down bar closing off the lows suggests the
markets are not ready to fall. High volume up bars pushing
through the highs represent absorption of supply.

Buying Climax
Buying Climax

Stopping Volume
Background - After rising market, it is a start of distribution.
If there is an old top in the background, then this may be
an absorption of supply.
Favourable Future - Upthrusts or no demand bars. High
volume up bars closing off the highs on narrow spreads.
Unfavourable Future - High volume down bars closing off
the lows, may need further testing.

Supply Overcoming Demand

Supply Overcoming Demand

Demand Overcoming Supply

Background - Substantial up move.
Favourable Future - Test of this bar on narrow spreads
and low volume is a further sign of weakness.
Unfavourable Future - No supply bars or down bars on
high volume closing off the lows show sign of strength,
may need further testing. This weakness will not disappear
suddenly.

End Of Rising Markets

Background - Weakness in the background is a must, can be high volume
up bars closing in the middle or no demand bars. If there is strength in the
background this may need more testing or it may be a false upthrust
altogether.
Favourable Future - Expect lower prices. A no demand bar will add to the
weakness. If we get a test down or a no supply bar and there is a weakness
in the background this may this test of supply may fail.
Unfavourable Future - No supply bar suggests a lack of selling pressure.
Down bars on high volume closing off the lows shows signs of strength may
need further testing.

Upthrust
Upthrust

Stopping Volume
Background - Uptrend.
Favourable Future - Upthrusts or no demand bars. High
volume up bars closing off the highs on narrow spreads.
Unfavourable Future - Low volume down bars or high
volume down bar closing off the lows suggests the
markets are not ready to fall. No supply suggests a lack of
selling pressure.

Professional Selling
Professional Selling

Stopping Volume
Background - Uptrend.
Favourable Future - Prices should fall
immediately.
Unfavourable Future - High volume down bars
closing off the lows, shakeouts or no supply
bars.

Trap Up Move
Trap Up Move

Stopping Volume
Background - Weakness in the background or minor sign
of strength in a downtrend. Strength in the background
weakens its effectiveness.
Favourable Future - Next bar should be down a small
upthrust is very bullish. The upthrust can also be on to
bars.
Unfavourable Future - High volume wide-spread up bar.

No Demand
No Demand

Stopping Volume
 VSA Sequential Setups

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