Reading the Background
Volume Spread Analysis glossary · Background, Trend & Context
Definition
No bar means anything in isolation. The meaning of every signal depends entirely on the background—the pattern of strength and weakness visible to the left on the chart.
Reading the Background in plain English
This is really the golden rule of the whole method: a single bar, all by itself, means almost nothing. Whether a bar is a big deal or just noise depends entirely on what came before it — the 'background,' meaning everything you can see to the left on the chart showing where the market has been strong and where it's been weak. It's like hearing someone shout 'fire' — terrifying in a crowded theater, totally normal at a campfire; the same event means opposite things depending on the setting. So before you read any signal, you first read the story leading up to it.
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