Gap Analysis (VSA)
Volume Spread Analysis glossary · Effort vs Result & Spread/Close Analysis
Definition
The interpretation of price gaps through the VSA framework. Gaps represent areas where no trading occurred and can signal strong professional intent. A gap up on high volume in an uptrend confirms strength, while a gap up on low volume may be a trap move. Gaps that are quickly filled suggest the move was not supported by professional activity.
Gap Analysis (VSA) in plain English
A "gap" is a jump on the chart where the price leaps from one level to another with no trading in between — often because big news hit while the market was closed. VSA reads these jumps for clues about what the professionals are really doing, and the volume that comes with the gap is the key. A gap up on heavy volume in a rising market shows genuine muscle behind the move, but a gap up on thin volume can be a trap that soon collapses — and a gap that gets quickly "filled" (price drifts right back to where it jumped from) tells you the smart money never actually backed it.
Also called: VSA
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