Volume Spread Analysis (VSA)
Volume Spread Analysis glossary · Effort vs Result & Spread/Close Analysis
Definition
A methodology for reading markets by analyzing the relationship between price spread, closing position, and volume on each bar to identify professional (smart money) activity and predict future price direction.
Volume Spread Analysis (VSA) in plain English
Imagine watching a poker game where you can't see anyone's cards, but you CAN see how much each player bets and how confidently they push chips forward. VSA is that skill for the stock market: instead of guessing where prices will go, you read three clues on each price bar to spot when big, well-informed players ("smart money") are quietly buying or selling. The three clues are the spread (how far the price traveled from low to high that day), where it closed within that range (near the top, middle, or bottom), and the volume (how much was actually traded). When those three things agree or clash in telling ways, they leave a footprint of what the pros are really doing.
Also called: VSA
Learn these first
Related Volume Spread Analysis terms
Volume Spread Analysis practice questions · Volume Spread Analysis flashcards · Volume Spread Analysis study guide