Dynamic Stabilization System (VSA). VSA - Vehicle Stability Assist Volume Stopping Signal

Dynamic Stability Assist (VSA) helps maintain directional stability by preventing the vehicle from oversteering or understeering. In addition, this system helps the wheels maintain traction while accelerating on slippery or loose roads. The operation of the system is based on individual control of the wheel brakes, as well as on limiting engine power.

If VSA is activated, you may feel that the engine responds differently when you press the accelerator pedal. You may hear noise coming from the hydraulic components of the VSA system. The VSA activation indicator blinks while the VSA system is operating.

The VSA system is not able to maintain vehicle directional stability under absolutely all driving conditions and does not exercise full control over the vehicle's braking system. Therefore, responsibility for choosing the speed limit when cornering and safety in general remains with the driver.

The indicator flashes when the vehicle stability control is activated.

If the VSA system malfunctions, the indicator turns on and lights up continuously. At the same time as the indicator, the VSA system activation indicator also turns on.

If the VSA warning light comes on while the vehicle is moving, stop the vehicle in a safe place and turn off the engine. Reset the system by starting the engine again.

If the VSA warning light does not go off after starting the engine or comes on again while driving, the vehicle must be taken to an authorized dealer's service center to have the VSA system checked.

When the VSA warning light comes on, a symbol appears on the multi-information display and may be accompanied by the message “CHECK SYSTEM.”

When the VSA system is not working, the vehicle maintains braking and controllability, but the additional functions of the traction control system and the stability control system will not work.

VSA SWITCH

The switch is located under the driver's side air vent. To disable or enable the VSA system, press and hold the switch until you hear a beep.

When the VSA activation indicator is illuminated, it indicates that the vehicle's vehicle stability control is disabled. Press the switch again and hold it pressed. This will turn on the system.

The VSA system is activated every time the engine is started, even if it was previously disabled by the driver.

In certain adverse conditions, when the vehicle is stuck in mud or snow, temporarily disabling the VSA system may allow the vehicle to free itself more easily. When VSA is turned off, the traction control system is also turned off. The system should only be deactivated if attempts to free the vehicle with the VSA system activated are unsuccessful.

After releasing the vehicle, immediately turn on the VSA system. It is not recommended to drive the vehicle with the traction control system disabled and the VSA system disabled.

Impact of tire size on VSA performance

Installing wheels and tires of different types and sizes on your vehicle may result in the dynamic stabilization system not functioning properly. When replacing tires, make sure they are the same type and size as the original tires.

When replacing summer tires with winter ones, also make sure that they are the same size as the original tires you purchased with the car.

When operating your vehicle in winter conditions, take the same precautions as when driving a vehicle not equipped with stability control.

VSA– vehicle exchange rate stabilization system.

These smart electronics include ABS+ traction control. It also regulates traction and throttle control. The VSA electronic control unit uses information from the sensors of its subsystems, which monitor the operation of the engine and transmission, the rotation speed of each wheel, pressure in the brake system, steering angle, and lateral acceleration at intervals of 25 times per second. By turning the steering wheel, and, accordingly, in the direction of the wheels, the VSA system assesses where the driver intends to move. Having compared this data, the computing unit, firstly, records an emergency situation, determining it by the correspondence of the car’s movement to the driver’s actions. Secondly, it calculates and sends a command to the actuators to execute a control action - that is, it brakes a certain wheel with a adjusted force. If it is necessary to limit the speed or reduce engine power, the VSA processor, associated with the electronic engine control unit, adjusts the power and crankshaft speed.

This is what it looks like in real life. The car moves along a curve, and the centrifugal force that arises tends to move the car to the outside of the turn or overturn it. Let's say the car enters a turn at too high a speed, and the driver, realizing that he made a mistake with his choice and will now end up in the oncoming lane or in a ditch, makes another mistake, for example, sharply braking or turning the steering wheel excessively in the direction of the turn. Having received information from the sensors, the VSA system almost instantly registers that the car is in a critical position and, preventing the wheels from locking to the point of skidding, redistributes the braking forces on the wheels so that their resultant counteracts the lateral force that tends to turn the car around a vertical axis. In this case, the rear wheel located on the inside of the turn will brake. This will immediately create a force that “pulls” the front axle of the car onto the correct trajectory.

The VSA system also shows its best side when avoiding an unexpected obstacle. Let's imagine a situation where a car is moving along a wide country road, the driver is quite relaxed - after all, there are no intersections or turns ahead, just a long straight line. But let’s say that an obstacle arises in his way. For example, a box or brick that fell from a truck in front. The driver sharply drives around an obstacle, say to the left, and then, in order to get into his own lane, turns the steering wheel to the right. In this case, VSA first applies the brakes to the rear left wheel, helping the car to avoid the obstacle, and it moves predictably to the left. Then, when returning to the previous trajectory, the front left wheel will slow down, which will prevent skidding and direct the front end in the right direction.

Candles (difference between high/low bar).

This method began to exist on stock exchanges in the first half of the last century. One of the main founders of VSA analysis is Richard Wyckoff. Subsequently, Tom Williams brought Wyckoff's initiatives to the model that exists today.

The VSA method involves reading a chart to identify large, informed market participants. VSA refers to discretionary analysis (a way of analyzing price movements using logic, without the use of rigid rules and technical indicators.), that is, the analysis is carried out without the use of rigid rules or technical indicators - the rules can change depending on the price/volume behavior. The fundamentals of VSA include the accumulation and distribution stages, as well as various signals that may belong to informed players.

VSA analysis is applicable on any exchange, be it Forex, futures, commodity or stock exchanges. Of course, there are differences in the method at different sites. The main difference is the liquidity indicator of a particular market. But the philosophy of VSA analysis remains the same - to act together with an informed player. This is exactly what we will talk about next.

Philosophy of VSA Analysis

Understanding the sectors.

There are nine to twelve sectors in the stock market, and each of these sectors can be divided into different industry groups. Traders today can use the nine sector SPDRs to compare sector charts to those of a lively market. There are also dozens of Dow Jones Industrial Averages and Industrial ETFs that can be used to measure the strength of certain groups.

Even though a buoyant market drives the overall trend for all stocks, Wyckoff realized that certain groups lead the market, and certain groups drag the market down.
The goal is to find groups that exhibit relative strength when market conditions are bullish and relative weakness when market conditions are bearish.

Keep in mind that Wyckoff was trading in the early 20th century, long before calculators and computers.
Everything was done by hand with pencil, paper and eraser. Even plotting a simple ratio chart to compare two securities would be real hard work, especially when tracking dozens of securities.
Instead of ratio charts, Wyckoff simply compared actual price charts to determine relative strength or relative weakness. Groups that hold when the market moves lower exhibit relative strength. Groups that do not rally when market advances show relative weakness. It's that simple.

Richard Wyckoff believed that only one who trades consciously according to his strategy and carefully plans all his actions is considered a speculator in the stock market. Everything else relates to gambling.

The Philosophy of Richard Wyckoff

1. Forget all the decision factors used. Everything you need is already reflected in prices and volumes;
2. Wyckoff's methods are universal and applicable to any time frame and market - currencies, stocks, futures, options, commodities, etc.;
3. The law of supply and demand governs all price changes;
4. Stock trading is not an exact science, prices are made by the actions of people;
5. Mathematical analysis of charts (indicators) is inferior to technical analysis;
6. As long as there are people willing to buy assets, the price will move up. As long as there are people willing to sell assets, the price will move down;
7. Finding turning points on a chart is not about mathematical analysis, but about knowing the psychology of investors.

Wyckoff method

The Wyckoff method uses three types of graphs:

• Japanese candles (or bars);
• Tic Tac Toe;
• Wave chart (relevant for the stock market).

Richard Wyckoff used all three graphs simultaneously.
On a candlestick chart, he determined the direction of price movement, entry and exit points, and also set stop losses. On the Tic-Tac-Toe chart, he assessed price movements and impulses and placed targets for taking profits.
In “Tic Tac Toe” the time factor is discarded and only price movements are taken into account.

A wave chart reflects the aggregate price of a group of assets. Today this is a chart of sectors, for example, energy. At that time, Wyckoff took several stocks of one segment of the economy and looked at how they moved as a group, and then selected among them those assets that moved faster relative to others.

Market Mechanics by Wyckoff

All price movements, according to Wyckoff's idea, move from balance to market imbalance. Balance is a situation when supply and demand in the market are balanced (flat). After balance, there always comes an imbalance phase, when there is a shift either towards buyers or towards sellers (trend). Accordingly, the price always moves from one balance to another.

In this case, the following phases of price movement are usually distinguished:

1. Accumulation phase;
2. Uptrend;
3. Distribution phase;
4. Downtrend.

• Phase A – Market Stop. As you can see in the figure, there was a steady downward trend in the market, and then a preliminary support zone appeared (at point 1 in the figure), when the price, after a steep drop, begins its first pullbacks (closing sales, first purchases). Next, a sales climax formed (point 2). All sales are ending here; there are no more people willing to sell. After all sales have been stopped, the price begins to quickly rise upward, forming a small maximum (point 3). This point allows you to preliminarily draw the resistance boundary. It should be understood that the resistance line is not a fixed price, but a certain price area that does not allow the market to move up. Points 4 and 7 in the figure mark secondary tests of supply, which are done by market makers to check whether there are still sellers in the market or No;
• Phase B – Balance of supply and demand. Next, we enter phase B, when the price begins to fluctuate within the range without going beyond its boundaries;
• Phase C – False Breakout. This is the most dangerous phase, but it is a signal that the price is starting to swing from side to side, upsetting the balance. Points 8 and 10 indicate springs or shake-outs - these are the so-called stop-loss orders that are made by market makers at the end of a sideways movement. On the one hand, this is done in order to understand whether there are still sellers in the market, on the other hand, this is an excellent opportunity to get liquidity for next to nothing, since many traders place their pending orders at the boundaries of the range. The appearance of springs indicates that the flat is coming to an end and good movement should begin soon;
• Phase D – Search for entry points. The formation of point 13 indicates that the balance in the market is disturbed in favor of buyers who are beginning to slowly push the price up. Points 12 and 14 are called the last support points (some traders call them Last Kiss) - these are nothing more than rollback zones, and at this moment you need to open buy positions. VSA signals can be used as an additional filter. When an entry point appears according to the Wyckoff system, supported by the presence of an appropriate volume, you can safely enter the transaction. We will not dwell now on what VSA is; you can find all the information about this strategy;
• Phase E – Start of a new trend. Then phase E begins, and the price begins its confident upward movement.

Application of Wyckoff methods today

Despite the fact that a lot of time has passed since Richard Wyckoff's idea appeared, his methods are still relevant today. Market laws such as supply and demand always apply and are applicable in any market. However, it should be taken into account that this is a general scheme and without understanding the fundamentals of the market it is impossible to trade profitably. The formulaic application of Wyckoff's methods in their pure form will not work if you do not understand the nature of the market. Each market situation is individual: in some places the phase may be longer or shorter, there may not be false breakouts, or there may be very aggressive ones. However, it is safe to say that the Wyckoff method and VSA remain among the most popular among traders around the world.

If you have an interest in this trading system, then you can download a book on the Wyckoff method - D. Hutson “The Wyckoff Method”. There is another interesting book - David Weiss "A Modern Adaptation of the Wyckoff Method", but it is not so easy to find it on the Internet. You can read it online at the forum at the Richard Wyckoff Institute for Supply and Demand.

Faced with seemingly irrational markets, an investor who is trying to remain calm and sane may become frustrated or confused by new techniques for picking stocks, analyzing the market, and predicting market prices. Then it's time to get back to basics.

Back in the 1930s, Richard Wyckoff, a “self-taught man,” promised to show “the real rules of the game.”

To this day, the Wyckoff method for trading and investing in stocks survives, and it provides traders with a solid foundation for analyzing the underlying relationships between market drivers. As a trader, Wyckoff saw firsthand that the fundamental law of supply and demand governed all price changes; and that the best indicator of the future course of the market is the ratio of supply and demand in the market.

The Wyckoff method analyzes price and volume and their relationships over time on a chart. The challenge is to judge how the market, groups of stocks, or individual stocks react to the struggle of supply and demand. You're looking for turning points - the final top of a bull market or the final bottom of a bear market. You identify the peaks and bottoms of intermediate steps that appear within the main trend. Wyckoff's theory is guided by the fact that every change in the market consists of a wave of buying and selling that continues as long as it can attract followers. When it is exhausted, the opposite wave begins. Small daily waves gradually develop into large waves of 3 to 5 points, which ultimately constitute a bearish or bull market with a swing of 10 to 20 points or more. If the wave was significant, Wyckoff acted in harmony with it.

Markets are extremely volatile. They evolve and change, but some parameters remain the same, while others are worth saying goodbye to. Adapting a trader to modern mechanisms is not an easy task, but it is an important part of the work of anyone who wants to achieve success on the financial markets of the world.

Thank you for your attention and good luck!

This article is addressed to those who are starting to study the VSA system for trading on the stock exchange. The author of the article is Tom Williams, a veteran trader who is the author of the VSA system.

Hello everyone, I'm Tom Williams.
Someone said that VSA sounds like the name of a disease. The only connection this trading system has with disease is that once you learn its principles, you will find it contagious.

What is VSA? This is a chart reading system, the letter “V” stands for volume (“volume” - volume, vsa - volume spread analysis - spread and volume analysis). Volume is represented as vertical bars at the bottom of the chart, and trading volume data is usually supplied by your broker. Most people around the world have no real idea what volume means, to the point that many people simply ignore it. But the volume is very important, it represents the activities of professional players. By observing the volume, you will know whether these professional players are active or, very importantly, inactive. By observing the activity, which is represented in volume, you evaluate how the price behaved, judging by the spread (in other terminology - range or range - that is, the difference between the upper and lower levels of the bar) of the corresponding bar. Closing price is also quite important.

There are a few things you should keep in mind. Markets are primarily driven by what we call the amount of supply or demand. This supply and demand is created by the activities of professional players, who may or may not be very active. Another thing you should note is that when you watch the activity of professional players - traders who can trade thousands of contracts, know that when the market shows weakness (a bearish sign) it can be recognized on an up bar (a bar that closes above the previous bar). These up bars are usually accompanied by a narrowing price spread (see example at the end of the article). The reason for this narrowing is that punters will at some point, usually after a bullish move, want to start taking profits, and the only real way they can get rid of positions of thousands of contracts is when the market moves higher, and of course the spread narrows This is due to the fact that whenever buy orders enter the market, they are readily satisfied by professionals who unload their assets onto buyers. This, of course, causes the spread to narrow. The exact opposite happens when they want to buy. Professionals cannot buy on a rising market, they buy on dips. In practice this happens after you have seen a significant price reduction. This creates vulnerability. Low prices have become attractive. These dip purchases usually cause the spread on down bars to narrow because buyers are supporting the market. In other words, they absorb the usually panic selling from non-professional traders. We can see this happening in volume spikes, we call it stopping volume.

You should know that professionals are fully aware of the effect their actions have on non-professionals. Market makers have the ability to move the price to hit stop orders and send as many traders as possible in the wrong direction. Therefore, VSA has signals such as upthrust, which knock out sellers' stops and direct buyers into erroneous longs. A similar thing happens with what we at VSA call shakeouts. Professionals are aware that a rapid drop in price on “bad news” will provoke panic and force inexperienced traders to sell, usually at a loss for them. This gives professionals the opportunity to buy at low prices.

At point A (20 minute ES futures chart on Friday, October 8, 2014) we can see a specific VSA signal - a market top, a potential buying climax. Every time you see an up bar after a bullish move at a new all-time high on a tight spread, closing in the middle, with very high volume - this clearly means that the professional money is selling their positions, and they are definitely not bullish at that moment . However, this is a fairly common story; they tend to test the market on Monday or Tuesday. If you see a clean, obvious test early in the week, expect higher prices.

Tom Williams

Learn more about the VSA system on the Institute of Supply and Demand forum. Read Russian translations of Tom Williams' weekly newsletter letters, in which he reads the stock price chart, bar by bar. Also on the forum there are hundreds of detailed graphs of experts of the VSA system and the Wyckoff method.

Good afternoon, dear readers! With today’s article, I am opening a new section on my blog – “VSA”, in which articles will be published regarding the VSA (Volume Spread Analysis) trading method. But before I start publishing, I would like to first devote a post to the technique itself.

So, let's start in order.

Let me remind you that volume on the stock exchange is the number of completed (expected) orders for transactions, both for purchase and for sale, their imbalance moves the price and the greater it is, the stronger the market moves. What plays an important role is not the volume of applications, but the volume of weight (money) of each application.

Volume is activity and the greater it is, the higher the volume.

It is important to understand that the market is driven by large players who are capable of moving the price in one direction or another with their capital, and it is advisable for us ordinary traders to open positions in the same direction as them, but not everything is so simple.

On the stock market, a trader has the opportunity to see the current volume and weight of orders in the order book; it displays the volume of contracts on a particular financial instrument.

But in Forex this opportunity is absent due to the fact that it is decentralized, trading is not carried out in specially designated areas. It is global and therefore it is impossible to know the exact volume of transactions made on the market, at least for us, mere mortals.

So what should we do now? This is where the VSA trading technique comes to the rescue.

What does VSA mean?

VSA (volume spread analysis), which translated from English means “spread and volume analysis”. This method allows you to establish the reasons for price movement (from the position of volumes) and determine with a high degree of probability its future direction.

The founder of the modern VSA analysis method is Tom Williams, and the progenitor of understanding market volumes is Richard Wyckoff, who noticed the peculiarity that the market is moved by volumes.

Tom Williams believes that the main indicator for professional, successful traders is volume.

Knowing the volume on a particular instrument is strength, a powerful weapon in the hands of a trader, the key to the truth.

For this reason, stock exchange workers around the world prefer to hide information about volumes in every possible way.

The analysis of volume indicators for Forex using the VSA method is based on tick volume and volume from the futures market of the Chicago Mercantile Exchange (CME).

Tick ​​volume is the number of times the price has changed over a certain period of time. If, for example, you set the H1 timeframe in the terminal, then the analysis is based on the number of price changes (ticks) made in 1 hour.

Important know that tick volume is not real volume, but it can fairly accurately determine the relative values ​​of volumes on Forex.

CME indicators receive volume data from the Chicago Exchange. Currency futures volume can be used to analyze Forex volumes, but such indicators are often paid.

Let us dwell in more detail on tick volume, since it is the most accessible and free for us.

How a bar is analyzed using the VSA method using tick volume:

1. Volume on the current bar (the obtained values ​​are compared with the volume values ​​of previous bars).

2. Spread, just do not confuse it with the difference between the purchase and sale prices, here the spread means the length from the High and Low of the candle.

3. Bar closing price.

The stronger and faster the price of the bar changes (tick volume increases), and if this is also accompanied by a wide spread (a large distance between the high and low of the bar), then the volume of money injected into the market is large.

Professional players begin to sell on ascending bars and buy on descending bars, no matter how strange it may sound, but this is true. Due to the fact that there are no major players to continue the movement.

For example, after an upward movement, the volume began to fall (large players are not interested in further growth, they stop buying), the price moves up for some time by inertia (due to small speculators), and then begins to roll back (fall) on small volumes. , accordingly, this gives a signal to open a sell transaction.

In general, VSA is a rather interesting technique, and if you understand it, understand it, then you will know how the market moves, and this is a plus for your trading.

This article is a small introduction, an introduction to VSA, it is impossible to fit everything into one post. I myself became acquainted with this technique not long ago, and as I progress in my study and understanding of trading techniques, I will publish materials in a new section, and I will also try to introduce you to interesting indicators and strategies where volume is the basis of the analysis.