This is the primary driver of price; when demand exceeds supply, prices rise, and vice-versa.
The "cause" is a period of accumulation or distribution, and the "effect" is the subsequent trend. Trading In the Shadow of the Smart Money
, authored by Gavin Holmes, is a comprehensive guide to understanding financial market movements by tracking institutional players, often called the "Smart Money". The book is primarily rooted in Volume Spread Analysis (VSA) , a methodology popularized by Tom Williams that interprets the relationship between price, volume, and the spread of a candle to reveal institutional activity. Core Principles of the Book This is the primary driver of price; when
This law focuses on the relationship between volume (effort) and the resulting price movement (result). Divergences here often signal market turning points. The book is primarily rooted in Volume Spread
Unique to Holmes' approach, this emphasizes the psychological aspect—specifically, belief in one's system and the ability to succeed. Key Trading Concepts
The book provides practical tools to identify "institutional footprints" on a chart:
The material is built on four universal laws that Holmes argues govern all markets and individual success: