medium · Volume Spread Analysis effort-vs-result-spread
A bullish two-bar reversal appears at the bottom of a range.
If the volume on Bar 2 is significantly lower than Bar 1, what is the VSA takeaway?
- The market is likely to collapse further because professionals didn't buy the second bar.
- The supply was exhausted on Bar 1, making the price easy to mark up on Bar 2.
- The reversal is a fake move designed to trap the buyers before a new low.
- The move is weak because there is no 'demand' supporting the rise.
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