This occurs at the bottom of a bear market. The public is panicked and selling their assets at a loss. Smart Money steps in and quietly buys (accumulates) these assets at wholesale prices without driving the price up. This creates a trading range with high volume on down-bars that close off their lows, showing that buying is absorbing the selling. Phase 2: Markup
A "no demand" signal in a strong uptrend means nothing. A "no demand" signal after a long distribution phase is everything. Always look left on the chart.
Volume Spread Analysis is a method of analyzing financial markets by examining the relationship between volume, price, and spread. The core idea behind VSA is that volume and price action are interrelated, and by studying these two components, traders can identify potential trading opportunities.
Do you currently use any that you want to integrate with VSA? volume spread analysis abcs of vsa
Before executing any trade based on VSA, validate the setup using this logical sequence:
Occurs in an uptrend or rally.
This occurs during a downtrend.
Volume Spread Analysis (VSA): What It Is & How It Works - StockGro
Where the price closes relative to the spread is critical.
Before entering any trade, run this mental checklist: This occurs at the bottom of a bear market
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The linchpin of Volume Spread Analysis is the principle. Every bar on your chart tells a story about how efficiently the market is translating effort (volume) into result (price spread).
Are there any you want to combine with VSA? This creates a trading range with high volume