Most traders are aware of the two widely known approaches used to analyse a market- fundamental analysis and technical analysis.
Many different methods can be used in each approach, but generally speaking fundamental analysis is concerned with the question of why something in the market will happen, and technical analysis attempts to answer the question of when something will happen.
Volume Spread Analysis, however, is a third approach to analysing a market. It combines the best of both fundamental and technical analysis into a singular approach that answers both questions of 'why' and 'when' simultaneously.
An up bar or down bar is determined from the previous close to the current close, in whatever timeframe you are working.