Volume Spread Analysis – new term, which describes the method of interpretation, analysis and understanding
graphics on your computer screen.
For a correct volume analysis, you need to understand, that the recorded volume contains only half of the information, necessary for correct analysis. The other half of the information is found in price spreads.
Volume always indicates the amount of activity occurring. The corresponding price spread shows the price movement on this volume [activity].
Volume Spread Analysis seeks to establish the cause of price movements and from the reason to predict the future direction of prices. The reason – imbalance between Supply and Demand in the market, which is created by the activities of professional operators. the effect – or bullish or bearish movement. We will also look at the subject from the other side of the trade.. This is a close study of the reactions of specialists and market makers., which will give you direct access to future market behavior.
Like any other free market place, prices in financial markets are driven by Demand and
offer. It's not a big secret, but, Supply and Demand have their own characteristics in the stock market. To be an effective trader, need to understand, how Supply and Demand operate in different market conditions, and how you can take advantage of this knowledge. This book will help you gain that knowledge.
