Technical Analysis7 min read

Volume Spread Analysis: Reading the Market's True Intent

VSA combines volume and price spread to read institutional activity. Learn the basics. Read effort versus result to spot accumulation and distribution.

What Is VSA?

Volume Spread Analysis (VSA) looks at the relationship between volume, price spread (high-low range), and close position. It attempts to identify institutional buying and selling.

Key Signals

  • High volume + narrow spread + close near high: Accumulation (buying)
  • High volume + wide spread + close near low: Distribution (selling)
  • Low volume + wide spread: No demand (fake move)
  • Volume increasing on up bars, decreasing on down bars: Bullish

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