Volume Spread Analysis Abcs Of Vsa [upd] Site

The spread is the distance between the high and low of a candlestick. A wide spread indicates high volatility and strong emotion (fear or greed). A narrow spread indicates low volatility and disinterest. In VSA, spread represents result or enthusiasm .

This is the most basic economic principle. When demand exceeds supply, prices rise. When supply exceeds demand, prices fall. However, VSA adds a layer of nuance: it identifies hidden supply and demand. A stock might be rising, but if VSA shows high supply entering the market, the rally is doomed to fail. Volume Spread Analysis Abcs Of Vsa

: Represents the total activity or "effort" of market participants during a specific timeframe. The spread is the distance between the high

Activity refers to the amount of volume accompanying a price move. In VSA, volume does not just mean "a lot of trading"; it represents professional activity. In VSA, spread represents result or enthusiasm

Never judge a single bar in isolation. Look left.