Background Scoring

Volume Spread Analysis Glossary

A scalar score that summarises the strength-versus-weakness balance of the recent background into a single number used to gate signal entries. Computed as Background Score = sum_i=t-25^t-1(S_i - W_i), where S_i = 1 if bar i is classified as a sign of strength and W_i = 1 if it is a sign of weakness (otherwise 0), summed over the prior 25 bars. Buy signals require the score to be positive; sell signals require it to be negative. The score operationalises the VSA principle that no current bar is meaningful without background context.

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