VOLUME SPREAD ANALYSIS (1) SUCCESSFUL BREAKOUT, TRUE EXAMPLE IN GME LET'S DIG IN DEEP TECHNICAL ANALYSIS.
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| Author       | Source       | 
| :-------------: |:-------------:|
| [u/AeterSatyr](https://www.reddit.com/user/AeterSatyr/)| [Reddit](https://www.reddit.com/r/GME/comments/ma72nj/volume_spread_analysis_1_successful_breakout_true/) | 

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[DD](https://www.reddit.com/r/GME/search?q=flair_name%3A%22DD%22&restrict_sr=1)

Y'ALL WHATS'UP! I HOPE YOU HAD A GREAT WEEKEND! ARE YOU READY FOR EXCITING WEEK AHEAD? HELL YEAH I CAN'T WAIT TO SEE SOMETHING NICE!!

My name's Ralph and I'm a VSA student, I've been studying VSA method from 5 years and still learning everyday. I'm full day trader and I invest in stocks and cryptos.

First let me thank everyone who gave the certificate of retardation in my previous post, I'm proud of it really, love you [SOMETHING BIG ABOUT TO BRRRRRRR.. : GME (reddit.com)](https://www.reddit.com/r/GME/comments/m98zdv/something_big_about_to_brrrrrrr/)

Some people are interested in VSA method as I noticed and Here I'm to explain the logic behind it

What is Volume Spread Analysis? is a method to study a chart by seeing the foot prints of Pro traders and market makers,

These people have only one JOB! is to make market! no matter if you lose or earn money, they MUST by law to make the market and they have a special name ( SMART MONEY ) they have special tools that aren't available to retail traders or small investors such as Deep market order book, and also they really Pro reading Markets, unlike (us) we use emotions and really simple useless indicators to decide if we should buy or sell. They don't do that.

They also can manipulate the market for their own interests, but it doesn't mean they combat the market, They just use the market conditions for their own interest to increase their money and profits,

In VSA system it shows you exactly what they are doing and when they're stepping in or out. this system will increase the probability of success of your trades and your study to the market. Today I'll explain one thing that market makers they often do after a sideway (accumulation / distribution) and how they test it. but first let me explain what is Volume and Spread.

Volume: it indicate for the market activity in a certain time frame. we have Low, Ultra low, Average, high, Ultra high Volume.

[![r/GME - VOLUME SPREAD ANALYSIS (1) SUCCESSFUL BREAKOUT, TRUE EXAMPLE IN GME LET'S DIG IN DEEP TECHNICAL ANALYSIS.](https://preview.redd.it/iadlfnm5cgo61.png?width=1498&format=png&auto=webp&s=b49022d1791176c09b64bc47b58df582f33e221d)](https://preview.redd.it/iadlfnm5cgo61.png?width=1498&format=png&auto=webp&s=b49022d1791176c09b64bc47b58df582f33e221d)

Spread: is how the price did moved in certain time, we have Wide spread, Ultra wide, Narrow spread and Average spread.

[![r/GME - VOLUME SPREAD ANALYSIS (1) SUCCESSFUL BREAKOUT, TRUE EXAMPLE IN GME LET'S DIG IN DEEP TECHNICAL ANALYSIS.](https://preview.redd.it/ens509cmcgo61.png?width=1485&format=png&auto=webp&s=2e605984c940e616490dbe4c4f64a516373410b4)](https://preview.redd.it/ens509cmcgo61.png?width=1485&format=png&auto=webp&s=2e605984c940e616490dbe4c4f64a516373410b4)

BREAKOUT or EFFORT TO RISE. What is the Breakout in VSA.

It's a bar has Wide spread and High volume and the close of the bar is off the Top if the breakout is bullish. it should not be Ultra wide spread and it volume must not be Ultra high, remember the good Market doesn't like the Ultra high volume.

After we see the breakout we must expect the next bar could be an UP bar to confirm the breakout, if the next bar is Down bar it means the breakout has failed or maybe fake one,

Also Market makers they can do this to trap the weak holders in high position and force them to sell at lower prices to add a pressure to the bearish market, and also to catch stop losses or to activate any selling orders, This is a manipulation but it has different names in VSA I'll explain them later,

Now, the True breakout is made to push up the price and in VSA it's EFFORT to RISE, and after any effort must be a result, the result must be the next bar, remember the Market isn't not place of randomness and Chaos! everything is organized perfectly, but it needs someone Pro to find the perfect sign! Now I'll show you a good example from the Chart.

[![r/GME - VOLUME SPREAD ANALYSIS (1) SUCCESSFUL BREAKOUT, TRUE EXAMPLE IN GME LET'S DIG IN DEEP TECHNICAL ANALYSIS.](https://preview.redd.it/dh001g5ncgo61.png?width=1857&format=png&auto=webp&s=ba2232a77606c2b9d06ad89db0ca3d29d6aa0356)](https://preview.redd.it/dh001g5ncgo61.png?width=1857&format=png&auto=webp&s=ba2232a77606c2b9d06ad89db0ca3d29d6aa0356)

Look how the breakout in 08/March how broke the 184$ resistance! it had the perfect conditions; The spread was wide but not ultra wide, and the Volume was high but not ultra high, and the next bar was up, that effort had a decent result! so the Market Makers had pushed the price successfully into higher prices and now they are testing if there is any supply left in the market. let's see the reaction at 184$ level.

[![r/GME - VOLUME SPREAD ANALYSIS (1) SUCCESSFUL BREAKOUT, TRUE EXAMPLE IN GME LET'S DIG IN DEEP TECHNICAL ANALYSIS.](https://preview.redd.it/rpw9877ocgo61.png?width=1920&format=png&auto=webp&s=c15735364c425aab2f01c03b70435fac6fdc8135)](https://preview.redd.it/rpw9877ocgo61.png?width=1920&format=png&auto=webp&s=c15735364c425aab2f01c03b70435fac6fdc8135)

(1) we've got a decent reaction when the price fall rapidly, 184$ was a good support level but the fall contained selling pressure,

(2) we've got a better reaction because the selling pressure was less than (1) and the reaction followed by 2 down bars with narrow spreads and ultra low volume,

(3) 184$ showed a real strength and for me personally I think the test has been successfully passed. The low volume and narrow spread Down bars near a support line are signs of strength, it means the supply has been dried out and no selling pressure left to resist the up movement.

So far so good, I expected the Market could fall even further to lower prices last week and I mentioned that in a post [Ant dip is coming, prepare some pennies to catch it! : GME (reddit.com)](https://www.reddit.com/r/GME/comments/m31puh/ant_dip_is_coming_prepare_some_pennies_to_catch_it/) but people obviously didn't understand What I meant, I hope now the picture is clear enough to understand the science behind the market.

Test signals are extremely important in VSA and I'll explain one by one later on. Testing in a rising market and testing in a falling market. You should understand all the principles to be Pro trader and Pro in reading the chart.

This Post is for education purpose, I'll leave the personal decisions for you, unless if you're an ape who likes the stonk!

Sorry if I made some grammatical mistakes, Trying hard to improve my language.
