VSA Core: Spread, Volume, and Close Reading
The foundation of Volume Spread Analysis is reading the three variables of every bar — spread, volume, and close position — to reveal whether demand or supply is in control.
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VSA Core: Spread, Volume, and Close Reading
Three numbers per bar. Together they tell you who won the fight.
Before hunting named patterns, a trader must internalize the three readings VSA applies to every single bar. Master this triad and the named setups (no demand, stopping volume, upthrust) become obvious consequences rather than memorized shapes.
1. Spread — the range of effort
The spread is the high minus the low of the bar. VSA classifies it qualitatively:
- Narrow spread: small range, often signaling hesitation or absorption.
- Average spread: normal continuation.
- Wide spread: strong directional push, usually on news or professional activity.
A narrow spread on high volume is one of the loudest VSA warnings — large effort, tiny result.
2. Volume — the effort spent
Volume is the raw effort behind the bar. Read it relative to the recent average, not in absolute terms. VSA traders typically compare each bar's volume to a 20- or 30-bar moving average:
| Volume level | Meaning |
|---|---|
| Ultra high | Climactic activity, professionals involved |
| High | Active participation |
| Average | Normal market |
| Low | Disinterest, no professional backing |
3. Close position — the result
Where price closes inside the bar's spread tells you who held power at the end of the period:
- Close on the high: demand dominated to the bell.
- Close in the middle: balanced, often a warning sign in trends.
- Close on the low: supply dominated.
Putting the three together
The read only means something when all three are combined. Two examples:
Bullish bar: wide spread up, high volume, close on the high. Demand is in clear control.
Warning bar: wide spread up, ultra-high volume, close in the middle. Professionals bought and sold heavily; the close-on-middle tells you supply absorbed the buying. This is the classic shape of a buying climax.
A practice drill
Pull up any daily chart and read the last 20 bars aloud using the three variables only. Do not name patterns yet. State: "wide spread, high volume, close low." After 20 bars you will start seeing the story professionals are writing, not the story the news is telling.
Common pitfall
Beginners obsess over volume alone. A high-volume bar means nothing without its spread and close. Three bars with identical volume can be bullish, bearish, or neutral depending on the other two readings.
Next: see how this triad leaves a demand or supply footprint inside candles.
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