VSA Introduction

1. Volume is activity. Hence tick volume can be used where actual contract volume is
not available.

2. Two ways of looking at volume:
* relative volume: volume in relation to the previous bar or bars.
* actual volume: the amount (size) of volume an individual bar represents.

3. Strength comes in on down-bars and weakness comes in on up-bars.

4. Markets do not like high volume up bars with wide spreads? Why because there is a
possibility of Professional Selling into such a bar.

5. Professional Money deals in large amounts and thus sells into up bars so as not to be
hurt by their own selling. The converse would also be true.

6. 85% of a volume histogram represents Smart Money activity.

7. Smart Money is active on all time frames. Various time frames are used to hide their
actions from those that can read a chart and each other.

our volume spread analysis