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.

Sign up free — get all 72 Volume Spread Analysis terms, flashcards & rank tracking →

More Volume Spread Analysis terms

KomFi: Test Prep Made Easy

KomFi: Test Prep Made Easy — free adaptive practice for GMAT, GRE, SAT, ACT, National Real Estate Exam, Investment Banking, and finance with full explanations.

KomFi Academy is free GMAT prep and personalized GMAT help built as a training platform: 89,613+ practice questions, 30,000+ flashcards, on-demand video lectures, podcasts, and 4K slide decks. Flagship tracks: Free GMAT Prep, Free GMAT Resources, National Real Estate Exam Prep, Investment Banking Prep, Finance Prep, GRE, SAT, ACT, LSAT, MCAT, Financial Accounting, Private Equity, Private Credit, and Quantitative Finance.

Free GMAT Prep & Personalized GMAT Help

What's inside

Topics

View pricing · Read testimonials