Volume Spread Analysis (VSA) interprets the relationship between volume, price spread, and closing price to identify the market intent of institutional investors. Based on the principles of supply, demand, and effort versus result, VSA seeks to identify accumulation and distribution phases to forecast trend changes. For a detailed overview of VSA principles, visit Think Capital. What is VSA (Volume Spread Analysis)? - Binance
: A high-volume down-bar that closes off its lows, suggesting professional buying is absorbing the fall. Climactic Action volume spread analysis abcs of vsa
Think of volume as the "fuel" or the "effort" put in by the market. High volume indicates that professional players are active. Low volume suggests a lack of interest from the big players. In VSA, we don't look at volume in isolation; we compare it to previous bars to see if it is increasing or decreasing. B. Spread (The Result) The spread is the "result" of the effort. What is VSA (Volume Spread Analysis)
VSA helps identify where a market sits within the Wyckoff Market Cycle: High volume indicates that professional players are active
Conclusion
All market movements come down to one question: Is there more supply (sellers) or demand (buyers)?
: If high volume (effort) occurs but price barely moves (result), it signals hidden opposition, such as professional traders selling into a rising market. Cause vs. Effect