Lower Third Close
Volume Spread Analysis glossary · Effort vs Result & Spread/Close Analysis
Definition
A bar that closes in the bottom third of its range (below approximately 33%). In VSA, this indicates sellers dominated by the close. On a down bar with ultra-high volume, a lower third close may signal a selling climax if the background is already bearish.
Lower Third Close in plain English
Every price bar covers a range from its low to its high, and where price finishes (the close) inside that range tells you who won the fight that period — buyers or sellers. A "lower third close" means price ended down in the bottom slice of the range, so sellers shoved it back down before the bar finished — like a tug-of-war where the rope ends up deep on the sellers' side. On its own that's just weak, but if it happens on a DOWN bar with enormous volume after prices have already been falling, it can flag a "selling climax": the moment the last panicked sellers dump everything and big professional buyers quietly scoop it up.
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