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Old 12-08-2007, 05:35 PM
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Re: [VSA] Volume Spread Analysis

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Until there is some consensus here about how to determine DEMAND/SUPPLY volume, then anything else we have to say about VSA will remain confusing.
I'd love to have/gain that edge your looking for, to know what the volume truly was comprised of. I'm tuned into this thread anyhow but this discussion just got that much more intriguing.

I think the point of VSA though is through the plain jane volume and the candle's spread you can try to gauge effort vs. results. That combined with the concept that swamping volume on any extreme is usually the start of a trend reversal and to watch for the test of extremes with lower interest to confirm. I know I'm barely scratching the surface and want to keep learning more about No supply and No demand bars etc...

I'm a rookie and no pro so this is merely my understanding of VSA.
Keep posting the charts guys, I'm learning from you all.

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Price is simply the 2 way auctions method of advertisement. Volume measures the willingness of market participants to transact at the advertised price (AKA perceived value).
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