Volume Spread Analysis (VSA) is a trading methodology that analyzes the relationship between price action, volume, and the spread

Before downloading any , you must understand the four fundamental laws that govern this method.

Volume Spread Analysis (VSA) is a technical analysis method that uses volume and price spread data to identify trading opportunities. Developed by Tom Williams, VSA is based on the idea that volume and price movements are closely related, and by analyzing these two factors, traders can gain insights into market sentiment and make more informed trading decisions.

By printing or keeping a VSA guide open on a secondary monitor, you can quickly reference bar spreads and volume relationships in real-time without relying on guesswork. Summary Checklist for VSA Traders Establish Context

Scan for VSA signals at key levels. For long setups: look for Stopping Volume at support, No Supply bars, Shakeouts, or Tests. For short setups: look for Buying Climaxes at resistance, Upthrusts, or No Demand bars.

A brief breakout above a resistance level that immediately reverses and closes near the low of the bar. Upthrusts represent failed breakouts and are powerful bearish signals. "A breakout above resistance followed by a sharp drop" is how one professional source characterizes this pattern.

Near market tops, professional traders begin offloading positions to enthusiastic public buyers. The characteristic patterns include Buying Climaxes (wide spread, high volume, but the candle closes off its highs) and Upthrusts (brief breakouts above resistance that immediately reverse). As one professional analysis explains, "at the peak, small body candles with long upper wicks and high volume appear, indicating increasing selling pressure from smart money".