Volume Spread Analysis, is a new term which describes the method of interpreting, analysing and understanding a bar chart displayed on your computer screen. A chart with the high, low, close and volume will graphically show you how supply and demand presents its self to you in a form that you can analyse. For the correct analysis of volume one needs to realise that the recorded volume contains only half of the information required to arrive at a correct analysis. The other half of the information is found in the price spreads. Volume always indicates the amount of activity going on. The corresponding price spread shows the price movement on that volume [activity]. This book is about how the markets work, and, most importantly, will help you to recognise indications as they occur at the live edge of a trading market. Indications that a pit trader, market maker, specialist or atop professional trader would see and recognise.
