When a market moves up on a wide spread and high volume, it shows that "Smart Money" is actively buying. The high volume justifies the wide spread, indicating a healthy, bullish trend. High Volume + Wide Spread Down = Weakness/Bearish
Occurs in an uptrend or rally.
By learning to read the interaction between volume and spread, you can stop predicting market movements and start following the smart money. The ABCs of VSA provide the map to understanding whether supply is being absorbed or if demand is running dry. volume spread analysis abcs of vsa
Never look at a single volume bar. Compare the current volume to the previous 10–20 bars. Is it high, low, or average? When a market moves up on a wide
: Sellers are absent. Even though the price attempted to fall, no one was willing to supply shares at those levels. In a downtrend, No Supply suggests the selling pressure is exhausted. In an uptrend, it confirms healthy corrections and potential entry opportunities. By learning to read the interaction between volume
These are low-effort bars that confirm whether a market is ready to move. They are excellent continuation signals for trend traders.
Mastering the ABCs of VSA—Volume, Spread, and Close—allows you to read the market's "DNA," offering a significant edge in identifying high-probability trading opportunities. If you are interested, I can also: Show you on a chart.