Volume Spread Analysis (VSA) identifies smart money activity by analyzing the relationship between price spread (range),
closing position, and volume. These patterns reveal accumulation (buying) and distribution (selling) by institutional traders.
📉 No Supply
Narrow spread down bar with low volume. Sellers have withdrawn — supply is exhausted.
Signal: Bullish reversal or continuation expected
⬇️ Stopping Volume
High volume down bar with narrow spread closing near highs. Demand absorbing supply.
Signal: Strong buying at lows, potential bottom
🧪 Test
Low volume push below support that fails. Smart money testing for remaining supply.
Signal: Accumulation confirmed, markup likely
🌊 Spring
False breakdown below support with quick reversal. Shakeout of weak hands.
Signal: Strong buy signal, last point of support
📈 Sign of Strength (SOS)
Wide spread up bar with high volume breaking resistance. Demand overwhelming supply.
Signal: Markup phase beginning, trend confirmation
🔄 Backup to LPS
Low volume pullback after SOS. Last Point of Support before markup.
Signal: Entry point for trend continuation
📈 No Demand
Narrow spread up bar with low volume. Buyers have withdrawn — demand exhausted.
Signal: Bearish reversal or continuation expected
⬆️ Climactic Volume
Extremely high volume up bar near highs. Buying climax with smart money distributing.
Signal: Potential top, distribution starting
⬆️ Upthrust
High volume push above resistance that fails. False breakout trapping buyers.
Signal: Strong sell signal, distribution confirmed
📊 Supply Entering
High volume up bar closing off highs. Hidden selling into the rally.
Signal: Smart money selling into strength
📉 Sign of Weakness (SOW)
Wide spread down bar with high volume breaking support. Supply overwhelming demand.
Signal: Markdown phase beginning
🔄 Last Point of Supply (LPSY)
Low volume rally attempt after SOW. Final distribution before markdown.
Signal: Short entry point, trend continuation
⚠️ Effort vs Result Divergence
High volume with small price movement. Effort (volume) not matching result (spread).
Signal: Conflicting forces, potential reversal ahead
📊 Volume Dry-Up
Progressively declining volume in a trend. Momentum waning.
Signal: Trend weakening, watch for reversal
🔀 Trading Range
Price contained in range with mixed volume signals. Accumulation or distribution unclear.
Signal: Wait for breakout confirmation