Ever notice how some traders seem to read the market like they've got insider information? There's actually a technique called volume spread analysis that reveals what Smart Money is really doing beneath the surface.

Here's the thing: most people look at price and volume separately. But if you want to catch reversals before they happen, you need to understand the relationship between them. The core principle is simple—Effort versus Result. Volume is the fuel, price is how far that fuel actually moves you.

When you spot a candle with massive volume but a tiny body, that's when things get interesting. Even better if there's a long wick. That's called Absorption, and it tells you something crucial is happening. Picture this: price drops hard, volume explodes, but then buyers step in quietly and soak up all that selling pressure. The candle closes in the middle, almost like nothing happened. That's not random—that's Smart Money at work, and a reversal is usually right around the corner.

I started tracking these patterns using volume spread analysis techniques, and the difference in my entries has been noticeable. The key is comparing candle body length against volume to spot these anomalies. When effort doesn't match result, when you see volume that doesn't translate into movement, that's your signal.

Do you check for these discrepancies in your own analysis? Most people don't, which is probably why they miss these setups. Obviously, news matters for context, but it shouldn't be your only compass. Do your own analysis, spot the patterns, and make your own calls.