Of Vsa Updated: Volume Spread Analysis Abcs
| Bar | Volume | Spread | Close | VSA Interpretation (ABCs) | | :--- | :--- | :--- | :--- | :--- | | | High | Wide | High | Strong up bar. Smart Money accumulating. Effort = result. | | #2 | Ultra-High | Very Wide | Low | Selling climax. Effort very high, but closed low. Potential stop run. Watch for reversal. | | #3 | Low | Narrow | Mid/Low | No demand. Buyers absent. Weakness. Expected down move. | | #4 | High | Wide | Mid | Effort without result? Wide spread but didn't close high. Indicates supply entering. |
A narrow spread candle on low volume that closes in the upper half during an uptrend. This shows the big players are no longer interested in higher prices. volume spread analysis abcs of vsa
: The difference between the period's high and low. A wide spread indicates strong activity; a narrow spread suggests hesitation or "Smart Money" absorption. Closing Price | Bar | Volume | Spread | Close
: Represents the amount of activity or "effort" put in by market participants. | | #2 | Ultra-High | Very Wide | Low | Selling climax
Volume is the total number of shares or contracts traded in a given period. In VSA, volume is not just an indicator; it is the evidence of participation. High volume tells you that big players are active. Low volume tells you that the market is asleep—or waiting for instructions.