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Volume, Spread, and Close

Understand the three basic inputs of Volume Spread Analysis.

VSAVolumeSpreadClose
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The three inputs

Volume shows activity. Spread shows the range of the candle. Close shows where price finished inside that range. VSA begins by reading these together, never separately.

Why the close matters

High volume with a wide spread and strong close says something different from high volume with a wide spread and weak close. The close often reveals whether effort produced meaningful progress.

Common mistake

New traders see high volume and assume strength. That is incomplete. High volume can show strength, weakness, absorption, panic, or exhaustion depending on location and result.

Practice

For each candle, write: volume level, spread size, close position, and next-candle result.