Volume Spread Analysis with Candle Classification and Background Scoring

Summary

This open-source indicator organizes volume spread analysis (VSA) into candle-level classifications and broader market context. Its settings let users adjust how it identifies small bodies, long wicks, closes near a bar’s extremes, and narrow or wide spreads and volume. The script also provides effort-versus-result comparisons, moving averages, optional volume and open-interest displays, and pattern rules such as No Demand, No Supply, Shakeout, and Upthrust. Background bias is based on recent VSA scoring and can optionally incorporate a trend classifier.

The controls expose both simpler descriptive settings and numeric thresholds for spread and volume ranks, candle shape, and background strength. This makes the indicator configurable, but the provided document excerpt omits much of the calculation and scoring logic. It gives no performance study or evidence that its classifications predict returns. Signals therefore require independent interpretation and validation, including attention to instrument-specific volume data and the chosen thresholds.

Key ideas

• The indicator classifies candle shape, spread, and volume using adjustable sensitivity settings.
• It compares trading effort, represented by volume, with price result, represented by spread.
• Background bias uses recent VSA scoring and may incorporate a trend classifier.
• Optional rules cover No Demand, No Supply, Shakeout, and Upthrust patterns.
• The excerpt does not provide a performance evaluation or the full calculation logic.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.