VSA 101 – Everything You Must Know About VSA
Who Invented VSA?
There are three big names in VSA’s development.
– Jesse Livermore
– Richard Wyckoff
– Tom Williams
Jesse Livermore spoke of a theory based on market manipulation. He also worked his theory in his legendary trading career. However, he did not pass down concrete trading methods. His legacy is that of a trader and not an educator.
Richard Wyckoff was much more interested in education. To find methods that work in the markets, he interviewed top traders including Jesse Livermore. Wyckoff proposed the idea of a “Composite Trader” that embodies the entire market. He used the “Composite Trader” to explain the market phases of accumulation, markup, distribution, and markdown.
Neither Jesse Livermore nor Richard Wyckoff used the term “Volume Spread Analysis”. It was Tom Williams who used the term to describe the methods he built based on the Richard Wyckoff’s ideas. Tom Williams’ books and software has helped to propel the concepts of VSA among traders.