hard · Volume Spread Analysis background-trend-context

Holding the bar identical, how does the BACKGROUND trend most change the correct interpretation of this single low-volume up bar?

1. On Chart A it is a constructive sign of no overhead supply confirming a possible markup beginning; on Chart B the same low volume into a tired advance is better read as a lack of demand at higher prices, hinting the move is running out of buyers
2. On both charts it is bullish, because a narrow up bar on low volume closing on its high is by definition 'no supply' and always precedes a markup regardless of trend position
3. On Chart A it is bearish because low volume after a climax means buyers have abandoned the recovery, while on Chart B it is bullish because low volume in an uptrend confirms an effortless markup
4. On both charts it is meaningless, since low-volume bars carry no VSA signal and must be discarded until a high-volume bar appears

Sign up free to see the explanation and track your rank →