easy · Volume Spread Analysis background-trend-context
In the 25-bar lookback period for a Background Score (BS) calculation, the algorithm identifies 3 Signs of Strength (S) and 7 Signs of Weakness (W).
What is the resulting Background Score, and what does it imply for a potential long trade?
- BS = -4; Long trades should be avoided.
- BS = 10; Long trades are highly favorable.
- BS = -4; Short trades must be avoided.
- BS = 4; Long trades are acceptable.
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