KomFi. Academy

Background Scoring

Volume Spread Analysis glossary · Volume Spread Analysis

Definition

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.

Background Scoring in plain English

Background scoring boils down the recent history of a chart into one number that says whether strength or weakness has been building up. You look back over the last 25 bars and, for each one, add +1 if it was a sign of strength and subtract 1 if it was a sign of weakness; the running total is your score. A positive score means the recent backdrop leans bullish (so buy signals are allowed), while a negative score means it leans bearish (so sell signals are allowed). It's like judging a team's momentum by their last few games rather than one lucky play — VSA insists that no single bar means much without this context behind it.

Sign up free: all 72 Volume Spread Analysis terms as flashcards, plus practice questions with full explanations →

Related Volume Spread Analysis terms

Volume Spread Analysis practice questions · Volume Spread Analysis flashcards · Volume Spread Analysis study guide