Volume Spread Analysis

 

One word of warning on scans of particular VSA indicators.  THe VSA approach is all about reading the charts in context.  You do not rely solely on any one indicator but look for them in the context of what other Signs of Weakness and Signs of strength have gone on in the background.

 

See the Chart below where a valid Bottom reversal on high volume is then followed by the Selling Climax on ULtrahigh Volume.  IF you traded solely on scanning a Bottom reversal indicator you would probably have lost some money when the Selling Climax hit. The Bottom reversal signal was followed by a 2 bar rally on light volume (lime green bars) before more supply or high volume entered (Dark Violet bars) the market which then led to the Climatic action red bars.  So it is all about understanding the context rather than picking a indicator for a winner.