Reading Volume and Price

Volume Price Analysis (VPA) is the foundation of Basejump's scanning engine. The core idea: price shows what happened, but volume shows who was behind it.

A wide spread bar (large distance between high and low) with high volume means institutions are committing capital. A narrow spread bar with high volume can signal that smart money is absorbing selling pressure — a potential reversal.

Basejump analyzes every bar along three dimensions:

Spread — the bar's high-to-low range compared to recent average. Wide spreads signal momentum and commitment. Narrow spreads during a move can warn of exhaustion.

Volume — current bar volume versus the 20-bar average. Above-average volume confirms moves. Below-average volume on breakouts is a red flag. Volume leads price.

Close position — where the bar closed within its range. Closes near the high are bullish (buyers in control at the end). Closes near the low are bearish. Middle closes show indecision.

In Basejump, these three dimensions combine into a VPA signal: Demand Confirmed, Supply Confirmed, No Demand, No Supply, Stopping Volume, or Effort Without Result. Each signal has different implications for what happens next.

The Technical Analysis section on the setup detail page shows you the exact VPA signal and its components. The tooltip (?) next to each heading explains what it means.