medium · Volume Spread Analysis wyckoff-phases-schematics
During the 'Distribution' phase, how does the VSA practitioner use 'Trend Clusters' from previous high-volume areas?
- They act as target prices where professionals will look to finalize their accumulation program shortly before the eventual markdown begins.
- They represent zones of intensified resistance where professionals will often manufacture upthrusts to catch retail buy-stops.
- Trend clusters are simply ignored in VSA, because volume and spread analysis is treated as a lead-indicator-independent discipline.
- They indicate areas where the market-maker will narrow the spread there in order to encourage a fast, clean breakout move.
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