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Narrow Spread Bar

Volume Spread Analysis glossary · Background, Trend & Context

Definition

A price bar whose range is significantly smaller than recent average bars. In VSA, narrow spreads can indicate lack of interest, professional testing of supply on low volume (bullish), or a pause before a significant move. Context from background bars is essential for correct interpretation.

Narrow Spread Bar in plain English

A narrow spread bar barely moved — its high and low are close together — meaning price stayed in a tight little box for that period. On its own that's ambiguous, so context is everything: it can mean nobody cared (boring, no interest), or it can be a bullish clue that pros gently 'tested' the market by nudging price down and found almost no sellers waiting, which is why it stayed narrow on low volume. It can also just be the market catching its breath before a big move. Think of it like tapping the brakes to feel whether the road is slippery — the tap itself is small, but what it reveals about the conditions is the real information.

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