What is Volume Spread Analysis?
Volume Spread Analysis interprets the relationship between a price bar’s range, its close and trading volume to infer changes in supply and demand.
Volume Spread Analysis matters because it gives analysts a consistent way to discuss technical-analysis methodology. These concepts provide the conceptual vocabulary behind many chart annotations, pattern labels and discretionary trading frameworks.
How to read Volume Spread Analysis
Read Volume Spread Analysis together with trend, timeframe, volatility and market context. Its main role is technical-analysis methodology, not replacing the underlying price series.
What Volume Spread Analysis does not tell you
Its reading depends on the quality and coverage of the underlying volume data, which can differ substantially across markets and venues. Different analysts can apply discretionary frameworks differently, so reproducibility requires explicit rules and anchor choices.
Use in bonds, rates and macro markets
BondStats treats technical-analysis frameworks as descriptive market language. Fundamental valuation, policy expectations and market plumbing remain separate analytical layers. In fragmented OTC bonds, always identify whether the chart uses dealer quotes, reported trades, futures or an exchange-traded proxy.
Technical chart structures are context, not certainty. BondStats does not present a candlestick, drawing tool, indicator reading or chart pattern as a standalone investment recommendation. Where a concept depends on discretionary anchors or parameter choices, those choices should be made explicit.