Volume Spread Analysis is a critical concept in technical analysis. Dr. Alexander Elder, a leading developer of technical tools and the author of several best-selling financial books, has clarified this concept. The new trading for a living and come to my trading room are two of his most successful books.

Volume, according to his writing, is extremely important for traders. It is one of the market's key movers because the market is primarily driven by participants' fear and greed. Volume is also crucial in confirming trends and chart patterns.

Volume Spread Analysis (VSA) is a methodology used in financial markets to analyze the relationship between trading volume and price movements. It assesses how supply and demand affect price by examining volume (the number of shares traded) and the spread (the difference between the high and low prices of a trading session). By interpreting these elements, VSA aims to identify the actions of professional traders and predict future price movements. Key concepts include identifying accumulation (buying) and distribution (selling) phases, spotting potential reversals, and confirming trends. VSA provides insights into market sentiment and potential turning points, making it a valuable tool for traders seeking to understand market dynamics beyond traditional price charts.