vs code cannot find module '@angular/core' or any other modules

my project was generated with [Angular CLI] version 1.2.6.

I can compile the project and it works fine, but I always get error in vs code telling me cannot find module '@angular/core' cannot find module '@angular/router' cannot find module .....

I have attached content of my tsconfig.json file this has been really frustrating for me, spending 2 hours to figure out what is wrong, I have also uninstalled and reinstalled the vs code it doesn't work.

here is my enviroment specification :

@angular/cli: 1.2.6
node: 6.9.1
os: win32 x64
@angular/animations: 4.3.4
@angular/common: 4.3.4
@angular/compiler: 4.3.4
@angular/core: 4.3.4
@angular/forms: 4.3.4
@angular/http: 4.3.4
@angular/platform-browser: 4.3.4
@angular/platform-browser-dynamic: 4.3.4
@angular/router: 4.3.4
@angular/cli: 1.2.6
@angular/compiler-cli: 4.3.4
@angular/language-service: 4.3.4

os:Microsoft vs 10 enterprise

project root folder

.angular-cli.json
.editorconfig
.gitignore
.vscode
e2e
karma.conf.js
node_modules
package.json
protractor.conf.js
README.md
src
tsconfig.json
tslint.json

node_module folder

-@angular
--animations
--cli
--common
--compiler
--compiler-cli
--core
---@angular
---bundles
---core.d.ts
---core.metadata.json
---package.json
---public_api.d.ts
---README.md
---src
---testing
---testing.d.ts
---testing.metadata.json
--forms
--http
--language-service
--platform-browser
--platform-browser-dynamic
--router
--tsc-wrapped
@ng-bootstrap
@ngtools
-@types
--jasmine
--jasminewd2
--node
--q
--selenium-webdriver

tsconfig.json :

{
  "compileOnSave": false,
  "compilerOptions": {
    "outDir": "./dist/out-tsc",
    "sourceMap": true,
    "declaration": false,
    "moduleResolution": "node",
    "emitDecoratorMetadata": true,
    "experimentalDecorators": true,
    "target": "es5",
    "typeRoots": [
      "node_modules/@types"
    ],
    "lib": [
      "es2016",
      "dom"
    ]
  }
}