Trade Set-Up Sequence
Volume Spread Analysis glossary · Climaxes, Tests, Springs & Upthrusts
Definition
A structured pattern of 2–3 related VSA signals appearing within a 2–5 bar window that together justify a trade. Each sequence has three roles: Signal 1 alerts the practitioner that a setup may be forming, Signal 2 confirms and prompts preparation (calculating stop and position size), and Signal 3 is the trigger bar on which the trade is executed. The framework defines ten bullish sequences (e.g., Shake-Out → Test → No Supply) and twenty bearish sequences (e.g., Buying Climax → Supply Coming In → No Demand). No single bar should be traded in isolation—markets are stories unfolding bar by bar, and sequences enforce the discipline of waiting for confirmation.
Trade Set-Up Sequence in plain English
A market rarely gives you one perfect 'buy now' flash; instead it tells a short story over a few bars, and this is the rule that you wait for the whole story before acting. A set-up is a little run of 2–3 related clues appearing close together (within about 2–5 price bars), each with a job: the first clue is a heads-up that something might be brewing, the second confirms it and tells you to get ready (work out your safety exit and how much to buy), and the third is the green light you actually act on. Think of it like a friend who's about to ask a big favor — first they hint, then they build up to it, then they finally ask; you respond to the ask, not the hint. VSA catalogs ten of these bullish story-patterns and twenty bearish ones, all to enforce one discipline: never bet on a single bar alone, because markets unfold like stories, one bar at a time.
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Practice Trade Set-Up Sequence
Which trade set-up sequence is most commonly associated with the 'Mushroom Top' distribution phase?
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