Volume Spread Analysis Abcs Of Vsa

This indicates a lack of professional interest. If the market tries to rally on low volume, the move is unlikely to last because the "big guns" aren't backing it. This is often referred to as a "test" of supply. B is for Balance (The Spread)

A narrow spread on high volume is a major red flag. It suggests "churning." This happens when the smart money is absorbing all the orders from the other side, preventing the price from moving further. This often marks the top or bottom of a trend. C is for Confirmation (The Next Bar) Volume Spread Analysis Abcs Of Vsa

If you have ever looked at a chart and wondered why price suddenly reversed on a seemingly strong candle, or why a market fails to rise despite good news, the answer lies in the relationship between the range of the price bar (Spread) and the number of shares or contracts traded (Volume). This indicates a lack of professional interest

: A confirmation bar that closes high on increased volume, signaling the "all clear" for a move higher. Suggested Tools & Platforms B is for Balance (The Spread) A narrow

VSA teaches you a vital truth: And the spread tells you how urgently it happened. When you read all three together, you are no longer a gambler; you are a reader of the market’s secret diary. The ABCs of VSA are your decoder ring. Use them wisely.