Deep in the Tape – VSA (Invite Only)

Deep in the Tape – VSA (Invite-Only)
Overview

This invite-only study is built entirely on the Volume Spread Analysis (VSA) methodology developed by Tom Williams. VSA examines the interplay of volume, spread (bar range), and close position to highlight the footprints of professional activity.

The aim of this tool is educational: to make it easier for traders to study how supply and demand pressures appear on the chart in real time. It does not generate trading advice, but instead plots markers based on classical VSA principles so students of the method can recognize strength, weakness, confirmations, and traps without the cryptic complexity often found in raw VSA study.

What It Displays

Key VSA Events (visual markers on the chart):

Stopping Volume (SV): Wide down bars with climactic volume closing off the lows.

Selling Climax (SC): Exhaustion selling at the end of a decline, often near bottoms.

Shakeout (SO): A sharp push down that springs back to close strong.

No Supply (NS): Narrow down bar on low volume, showing lack of selling pressure.

No Demand (ND): Narrow up bar on low volume, showing lack of buying interest.

Supply Coming In: Volume surge after an up-move, suggesting sellers active.

Buying Climax (BC): Wide up bar with climactic volume and weakness into the close.

Upthrust (UT): False break above prior highs with a weak close.

End of Rising Market (EoRM): Narrow up bar on very high volume, closing weak, often signaling distribution.

Test Bar: Down bar on very low volume in an uptrend, testing for lack of supply.

Contextual Tools:

Trigger Levels: High/low of ultra-high volume bars projected forward, serving as natural support/resistance levels.

Cluster Zones: Optional shading to mark zones of repeated high-volume activity (potential accumulation/distribution).

Background MA: A simple moving average for context only — not a signal generator.

Interpreting the Markers (Tom Williams Style)

Bullish Background (professional strength):

Events: Stopping Volume, Selling Climax, Shakeout, No Supply.

Best studied when price is trading above trigger levels and above the MA, showing demand in control.

Bearish Background (professional weakness):

Events: Buying Climax, Upthrust, Supply Coming In, End of Rising Market.

Best studied when price is below trigger levels and below the MA, showing supply dominance.

Failures (Educational Study Only)

Not all setups confirm. In VSA, Tests sometimes fail, and No Demand or No Supply bars can be absorbed. These are marked as Failure markers.

Their purpose is purely educational:

To show where expectations do not play out.

To help students see how traps or absorptions form.

To illustrate Tom Williams’ lesson that the market is a testing ground — not a perfect pattern machine.

How to Use It

Study Background Activity: Watch for climactic volume and projected trigger levels.

Look for Response: After signs of strength (SC, SV, SO, NS), seek confirming Tests or NS bars. After signs of weakness (UT, BC, Supply Coming In), look for ND or UT confirmation.

Apply Context: Confirm whether price is above/below triggers and the MA to judge whether demand or supply has the upper hand.

Learn from Failures: Pay attention to failures as they show where expectations break down — some of the most valuable lessons in VSA.

Observe Clusters: Use cluster zones to study where professional activity tends to re-appear.

Why It’s Original

Built directly from Tom Williams’ VSA logic — spread, volume relative to average, wick size, close location, and background context.

Adds projected trigger levels and cluster zones for educational context.

Designed for clarity and study, removing unnecessary complexity while staying faithful to VSA principles.

This is not a mash-up of other scripts or public code; it’s a purpose-built framework for studying supply and demand dynamics.

I built this because it's what I wanted to see in a script ,true VSA Education .

Disclaimer

This script is for educational and analytical purposes only.
It does not generate buy/sell/alert signals, nor does it provide financial advice. Always perform your own analysis and risk management before making trading decisions.