Volume Spread Analysis Cheat Sheet

Read what volume and spread are really telling you. Spot smart money footprints with No Demand, No Supply, Stopping Volume, Climactic Action, and Test bars.

๐ŸŽ“ Master VSA Inside PAN Elite

๐ŸŸข No Supply

Low volume down bar, narrow spread

Bullish

๐Ÿ”ด No Demand

Low volume up bar, narrow spread

Bearish

๐Ÿ’ฅ Climactic Action

Ultra high volume, wide spread

Reversal

๐Ÿงช Test Bar

Low volume probe of a prior low

Confirmation

Complete VSA Signal Overview

VSA Signal Volume Spread Close Position Meaning Bias
No Supply Low Narrow, down Mid to low Sellers absent on a down move Bullish
No Demand Low Narrow, up Mid to high Buyers absent on an up move Bearish
Buying Climax Ultra high Wide, up Poor close (mid/low) Smart money distributing into strength Bearish reversal
Selling Climax Ultra high Wide, down Strong close (mid/high) Smart money absorbing into weakness Bullish reversal
Stopping Volume High Wide, down Closes off the low Demand steps in to halt a decline Bullish
Upthrust High Wide, up then reject Closes off the high Supply overwhelms a breakout attempt Bearish
Test Bar Low Narrow, probes low Closes off the low Prior selling pressure confirmed absent Bullish confirmation

๐ŸŸข๐Ÿ”ด No Supply & No Demand Bars

No Supply Bar

What to Look For:

โ€ข Down close bar
โ€ข Narrow spread
โ€ข Volume lower than the previous 2-3 bars

Why It Matters:

โ€ข Sellers can't push price down on real effort
โ€ข Often appears after a markup move or at support

Best Confirmation:

โ€ข A test bar shortly after
โ€ข Rising close on the next up bar

No Demand Bar

โ€ข

Up close bar, narrow spread

Volume lower than the previous 2-3 bars

โ€ข

Buyers not showing up

Rally lacks real participation, often near resistance

โ€ข

Two in a row = stronger signal

Back-to-back no demand bars warn of a reversal down

๐Ÿ’ฅ Climactic Action (M15-H1 & Beyond)

Buying Climax

Setup: Extended uptrend, ultra high volume

Bar shape: Wide range, closes mid or low

Read: Effort up, poor result

Follow-through: Watch for No Demand next

Smart money is selling into public buying enthusiasm

Selling Climax

Setup: Extended downtrend, ultra high volume

Bar shape: Wide range, closes mid or high

Read: Effort down, poor result

Follow-through: Watch for No Supply next

Smart money is absorbing supply from panicked sellers

Effort vs Result

Core rule: Volume = effort, spread & close = result

Match: High effort, wide spread, strong close

Mismatch: High effort, narrow result

Signal: Mismatches expose absorption

Anomalies between effort and result are where VSA edge lives

๐Ÿ›‘ Stopping Volume & Upthrusts

Stopping Volume

Perfect For:

โ€ข Spotting the end of a markdown
โ€ข Entry timing at support zones
โ€ข Confirming demand zone reactions

Read the Bar:

โ€ข High volume, wide down spread
โ€ข Close well off the low
โ€ข Often at a prior low or demand zone

Wait for: A test bar or up close bar to confirm before entry

Upthrust

Perfect For:

โ€ข Fading false breakouts
โ€ข Spotting supply at resistance
โ€ข Avoiding breakout traps

Read the Bar:

โ€ข High volume, pushes above a high
โ€ข Closes back inside the range
โ€ข Often at a prior high or supply zone

Wait for: A No Demand bar to confirm before shorting

๐Ÿ“ˆ Reading Background & Trend Context

Background Strength

Strong Background:

โ€ข Multiple no supply bars into a low
โ€ข Rallies on rising volume
โ€ข Reactions on falling volume

Weak Background:

โ€ข Multiple no demand bars into a high
โ€ข Rallies on falling volume
โ€ข Reactions on rising volume

Trend Confirmation

Confirms Uptrend:

Volume expands into up bars, contracts into down bars

Best Pairs to Apply:

โ€ข Any major pair with reliable volume proxy (tick volume)
โ€ข Combine with S&D zones for confluence

โš–๏ธ Risk Management by VSA Signal

๐ŸŸข No Supply Entry

Stop: Below the no supply bar low

Target: Next supply zone

Confirmation: Test bar or up bar

Risk/Reward: 1:2 to 1:4

๐Ÿ”ด No Demand Entry

Stop: Above the no demand bar high

Target: Next demand zone

Confirmation: Second no demand bar

Risk/Reward: 1:2 to 1:4

๐Ÿ’ฅ Climax Reversal

Stop: Beyond the climax bar extreme

Target: Prior swing / mean reversion

Confirmation: Test of the climax low/high

Risk/Reward: 1:3 to 1:6

๐Ÿงช Test Bar Entry

Stop: Below the test bar low

Target: Recent resistance / supply

Confirmation: Low volume on the test

Risk/Reward: 1:2 to 1:5

๐Ÿ“‹ Quick VSA Signal Guide

Down bar, low volume

๐ŸŸข No Supply โ€” sellers exhausted.

Up bar, low volume

๐Ÿ”ด No Demand โ€” buyers exhausted.

Wide bar, huge volume

๐Ÿ’ฅ Possible climax โ€” watch for reversal.

Probes a prior low, low volume

๐Ÿงช Test Bar โ€” confirms strength.

๐Ÿ”— Related Resources