easy · Volume Spread Analysis effort-vs-result-spread
Why is 'Relative Volume' considered more important than 'Absolute Volume' in VSA?
- Absolute volume numbers provide no context regarding whether professional activity is increasing or decreasing relative to a baseline.
- Relative volume alone is the only truly reliable way to filter out 'wash trading' found on centralized crypto exchanges.
- Absolute volume readings are frequently corrupted by the well-known 90-minute exchange reporting delay common to markets like London.
- Relative volume accounts for how the bar's spread reacts to activity, whereas absolute volume only measures total shares traded in a session.
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