VSA Volume Spread Analysis — Read Smart Money Bar by Bar
Bar-Level Reading System

Volume Spread Analysis

Tom Williams modernized Wyckoff for the screen era. Every single bar is a forensic record of who acted and how hard. Decode three variables — spread, volume, close position — and you read smart money's footprint live.

"Volume is the cause; price is the effect. Read them together or you're guessing." — Tom Williams

The VSA Triad — Three Questions Per Bar

Every bar must be interrogated through these three lenses before any interpretation.

1

SPREAD

High to low of the bar.

Wide = strong activity. Narrow = lack of interest or absorption.

2

VOLUME

Effort behind the move.

Compared to recent average, never absolute. High effort should produce result.

3

CLOSE

Position within the range.

Top = buyers won the bar. Bottom = sellers won. Middle = battle still on.

+ Background. The fourth invisible variable: what happened in the prior 5–10 bars and which Wyckoff phase we're in. The same VSA bar means opposite things in an uptrend vs near a top.

The Bar Lab

INTERACTIVE

Build any bar by adjusting the three sliders. The lab classifies it instantly using VSA logic.

Live Candle

High Mid Low VOLUME
VSA Reading

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VSA Signal Library

The eight most actionable VSA bar types. Memorize their fingerprints.

No Demand

Bearish

Narrow up-bar on low volume after rally. Buyers gone — no real demand pushing higher.

No Supply

Bullish

Narrow down-bar on low volume. Sellers exhausted — supply dried up. Bullish.

Stopping Volume

Bullish

Wide down-bar, massive volume, closes off the lows. Smart money absorbing.

Selling Climax

Reversal

Extreme wide down-bar with climactic volume. Capitulation — supply transferred.

Upthrust

Bearish

Spike up rejected, closes near low on high volume. Supply hit the offer.

Effort to Rise

Bullish

Wide up-bar, high volume, closes on highs. Demand in control. Sign of Strength.

No Result

Divergence

High effort, weak result. Volume huge but spread tiny. Hidden absorption — trend at risk.

Test Bar

Confirmation

Quick dip on very low volume, closes mid/high. Test passed — supply absent.

Sequence Reading Quiz

INTERACTIVE

Single bars are clues. Sequences are the story. Read these 3-bar combinations.

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Where VSA Bars Appear in Wyckoff Phases

Bar signals don't fire randomly — they cluster predictably inside specific schematic phases.

VSA Signal Accumulation Phase Distribution Phase
Stopping VolumePhase A — at the SC
Selling ClimaxPhase A — bottoming bar
Test BarPhase B/C — confirms Spring
No SupplyPhase C/D — confirms LPS
Effort to RisePhase D — Sign of Strength bar
No DemandPhase B/C — confirms LPSY
UpthrustPhase B/C — UT or UTAD bar
No Result (Effort/No Result)Phase A/B — at Buying Climax

Common Mistakes

Where retail loses money applying VSA in isolation.

Reading bars without trend context
A No Demand bar inside a roaring uptrend is meaningless. Same bar near previous resistance after 3 weeks of grind = warning. Background is everything.
Using absolute volume thresholds
"Volume > 1M" means nothing. VSA is about relative volume — compared to the last 20-30 bars on the same instrument and timeframe.
Acting on a single bar without confirmation
One bar is a hint. A sequence is a signal. Wait for the follow-through bar before committing — VSA practitioners speak of "test + confirmation".
Applying VSA to FX without volume proxy
Spot FX has no centralized volume. Use tick volume (futures) or substitute with COT positioning data for forex pairs.

Test Your Understanding

4 questions — instant feedback, no scoring stored.