Volume Spread Analysis

Volume Spread Analysis Define Volume: Total order executes in market like buy or sell.

Define Spread: Size Distance between high to low.

VOLUME: Seven Types of Volume

1. 2. 3. 4. 5. 6. 7.

Ultra High volume Very high volume High volume Average Above Average Below average Less than previous two volumes (pink volume)

Sign of Weakness Seven Types of SOW 1. 2. 3. 4. 5. 6. 7. 8.

End of Rising Market Buying Climax Top Reversal No Result From Effort Wide Spread Down Bar Through Previous Support UP Thrust No Demand at Market Top No Demand in Down Trend

End of Rising Market: It in a narrow spread gapped and up bar. Ultra high or very high volume Closing in middle or off the high Having a Strong bull run in the back ground

Buying Climax: It is widespread / average spread up bar Volume ultra-high or very high with next bar down close Closing off the high or in middle or on the low Having a strong bull run in the background

Top Reversal: It is a two bar sow, First bar is Wide spread up bar, closing on/off the high, with high volume (supply swamping demand) or low volume (no demand) It has three scenarios

No Result from Effort: It is a two bar sow, First bar is wide spread up bar, closing on or off the high with high or ultra-high volume. Second bar is a normal spread or wide spread down bar (rarely an up bar) closing near its low.

If the second bar low close are lower than the first previous bar low than it is a strong sow.

Wide Spread Down Bar Thorough Previous Support: It is a widespread down bar closing OFF/ON the low on increased volume (Wi-Fi volume & not excessive ultra-high) through previous support (possible range) with next bar down after an up move.

UP Thrust: It is a widespread or average spread bar closing anywhere between middle to low on higher and lower volume. The high of the bar is higher than the previous high of the bar, up bar is called Regular up-thrust and down bar clone hidden up-thrust. High volume up-thrust means quick buying then selling from smart money. Low volume up-thrust mean no interested in upside from smart money.

No Demand at Market Top: It is an up bar on volume lower than previous two volumes bars, generally spread is narrow or it can be wider, closing can be anywhere but must be higher than the previous bar is to qualify as an up bar.

No Demand in a Down Trend: It is an up bar on volume lower the previous two volume bars, Generally Spread is narrow or it can be wider, closing can be anywhere but must be clone lower than previous bar clone is to qualify as an up bar.