Volume Spread Analysis: The Hidden Secrets of the Market
Volume Spread Analysis: The Hidden Secrets of the Market Volume Spread Analysis (VSA) is a powerful technical analysis technique that combines price action and volume data to uncover hidden market dynamics. By understanding the interplay between these two crucial factors, traders can gain valuable insights into market sentiment, identify potential turning points, and make informed trading decisions. Key Concepts in VSA Volume: Represents the number of shares or contracts traded during a specific period. It indicates the level of market activity and the strength of buying or selling pressure. Spread: Refers to the difference between the high and low price of a security during a specific period. It measures the price volatility and the range of price movement. VSA Principles Volume Precedes Price: Changes in volume often precede significant price movements. Increased volume during uptrends indicates strong buying pressure, while increased volume during downtrends suggests st...