The ABCs of VSA

When not to take a trade

By Lauren Snedeker

Objectives for Today

• Learn three things to consider

before taking a trade

• Trends

• Sequences

• Confirmation

VSA Trading 101

• Rule #1: The trend is your friend!

Don’t Countertrend

• Warning #1: Don’t sell into an

Up Trend or buy into a downtrend

• You want to make sure you don’t

get caught in the testing ground

Don’t Buy in a Downtrend

Testing

Don’t Sell in an Up Trend

How VSA Can Help

• We have a diamond trending system

– Green for uptrend

– Red for downtrend

– White for sideways/reversal

Trend Confirmation is Key!!!

What is the Rule of 3?

Rule of 3 Confirmed

Three Red Diamonds

No Clear Trend

Patience is a virtue

• And can save you a lot of money!

• Don’t trade unless you see a clear trend

Warning #2

• Don’t take a trade until you see a clear sequence in place

• Use VSA Sequences

• Read the dialogue

boxes

• Be patient!

Other things to consider…

• Don’t trade at the Market Open

• Don’t trade on a bar that hasn’t closed yet

• Don’t trade the news

How do you trade this????

• EU Talks With Banks on Greek Writedown Said to Be Deadlocked- Bloomberg

• Big Europe Summit Won’t Solve The Problem, Says Mark Dow - Henry Blodget

• YOU DON’T because YOU CAN’T

Bad News Blues

Aren’t they helpful???

Do’s and Don’ts

• Do wait for a clear trend to be in place

• Use the Rule of 3

• Don’t trade the Christmas Tree!

• 3 same color diamonds In 3 timeframes

• Don’t trade at market tops or bottoms

Checklist for Clarity

Do I have a clear trend in place? Am I trading with the trend?

Do I have a clear VSA Principle?

Do I have a sequence or trade set up?

Do I have confirmation?

How to Reach Me

• Direct Line: 312-373-6294

• Toll Free: 855-848-4337

• Email: laurens@tradeguider.com

• Skype: lauren13sned