medium · Volume Spread Analysis effort-vs-result-spread
Why is 'Relative Volume' used instead of 'Absolute Volume' in professional VSA analysis?
- Absolute volume is a proprietary secret that only market-makers can access.
- A high-volume reading for one stock might be a low-volume reading for another depending on its average liquidity.
- Absolute volume is often incorrect due to the 90-minute delay.
- Relative volume allows for easier calculation of the Close Position formula.
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