#VolumeSpreadAnalysis #VSA #Sm
·

By Sandeep Chaudhary

Volume Spread Analysis (VSA) for Advanced Technical Analysis in Nepal

Volume Spread Analysis (VSA) for Advanced Technical Analysis in Nepal

Volume Spread Analysis (VSA) is one of the most advanced techniques in Technical Analysis, combining the study of price spread (range of a candle) and volume to decode the intentions of smart money — institutional traders who move the market. Unlike basic volume indicators, which only show how much activity took place, VSA reveals the story behind each candle — whether the market is being accumulated (bought) or distributed (sold) by professionals. For Nepali traders in the Nepal Stock Exchange (NEPSE), understanding VSA means seeing what institutions are doing before the big move happens.

At its core, VSA focuses on the relationship between volume, spread (high-low range), and closing price positionwithin the candle. It seeks to answer: “Who’s in control — buyers or sellers?” For example, a wide candle range with high volume closing near the top indicates strong buying pressure, whereas a wide range with high volume closing near the bottom shows selling pressure or distribution. Conversely, narrow spreads with low volume often signal consolidation or a no-demand/no-supply zone, where the market is resting before the next big move.

Smart traders use VSA to identify key patterns such as:

  • Stopping Volume: Extremely high volume at the end of a downtrend — indicating institutional buying and potential reversal.

  • No Demand Bar: A small up candle with low volume — a warning that the market lacks buying interest.

  • Effort vs. Result: When large volume produces little price movement, it shows hidden absorption — smart money accumulating quietly.

In NEPSE, where liquidity can vary sector to sector (especially in banking, hydropower, and insurance stocks), VSA provides an edge in spotting institutional footprints. It helps traders confirm whether a price rise is backed by real accumulation or just retail speculation. By combining VSA with Smart Money Concepts (SMC), Order Blocks, and Liquidity Zones, traders can pinpoint areas where the market is preparing for a major rally or reversal.

According to Sandeep Kumar Chaudhary, Nepal’s leading Technical Analyst and founder of NepseTrading Elite, “VSA is the x-ray of the market — it lets you see the hidden strength or weakness behind every candle. Once you learn to read it, you start trading with the institutions, not against them.” With over 15 years of banking and trading experience, and professional training from Singapore and India, he teaches traders to apply VSA, ICT concepts, and Price Action together to develop advanced, data-backed trading strategies for NEPSE.

Related Blogs

Kathmandu–Nijgadh Fast Track: A Multidimensional National Project Racing Against Time
Top

3 min read

Kathmandu–Nijgadh Fast Track: A Multidimensional National Project Racing Against Time

Kathmandu–Nijgadh Fast Track: A Multidimensional National Project Racing Against Time Amid a national climate dominated by political instability, protests, party disputes, and bureaucratic delays, the Kathmandu–Nijgadh Fast Track project has emerged as a rare symbol of hope. With only 17 months remaining before the revised deadline of Chaitra 2083, the project is once again under scrutiny as the Nepal Army reiterates its commitment to completing the long-awaited national pride project on time.

Dipesh Ghimire

·

14 Nov, 2025

World Bank Projects Nepal’s Growth at 4.7% Next Year, Driven by Reconstruction Activities
Top

2 min read

World Bank Projects Nepal’s Growth at 4.7% Next Year, Driven by Reconstruction Activities

World Bank Projects Nepal’s Growth at 4.7% Next Year, Driven by Reconstruction Activities The World Bank has projected that Nepal’s economy will achieve 4.7 percent growth in the coming fiscal year, primarily supported by reconstruction and rehabilitation activities. The global lender’s latest report indicates that although Nepal experienced economic strain this year, the pace of rebuilding could push the economy toward moderate recovery. According to the report, the service sector, which contributes the most to Nepal’s GDP, is expected to witness the largest negative impact during the review period. Tourism, retail, transportation, and hospitality sectors continue to suffer due to weak investor confidence, lower consumption, and slow economic activities. Despite these challenges, the World Bank believes that if Nepal ensures political stability and maintains sound economic management, the service sector could recover gradually and support overall economic growth.

Dipesh Ghimire

·

14 Nov, 2025

Power Supply Restored to All Industries After First Installment Payment of Dedicated and Trunk Line Dues
Top

2 min read

Power Supply Restored to All Industries After First Installment Payment of Dedicated and Trunk Line Dues

Power Supply Restored to All Industries After First Installment Payment of Dedicated and Trunk Line Dues Nepal Electricity Authority (NEA) has restored electricity supply to all industries that were previously disconnected for failing to pay premium tariffs under the dedicated and trunk line consumption category. According to the authority, power supply has resumed after the industries cleared the first installment of their dues as part of the 28-installment repayment plan announced earlier.

Dipesh Ghimire

·

13 Nov, 2025

SEBON Releases Latest FPO Pipeline—Over Rs. 229 Million Under Review
#NepalFPO #SEBON #NEPSE #Micro

1 min read

SEBON Releases Latest FPO Pipeline—Over Rs. 229 Million Under Review

Total FPO Pipeline Value: Over Rs. 229 million Main Sector: Microfinance only Companies in Pipeline: Matribumi Laghubitta, National Laghubitta & Vijay Laghubitta Premium Pricing: National Laghubitta updated to Rs. 270.49 per share Regulatory Environment: SEBON actively requesting updates & compliance documents Market Outlook: Microfinance institutions showing strong need for capital expansion in FY 2082/83

Sandeep Chaudhary

·

13 Nov, 2025

Nepal’s Right Share Pipeline 2082/83: Over Rs. 3.8 Billion in Capital Expansion
#NepalRightShare #SEBON #NEPSE

1 min read

Nepal’s Right Share Pipeline 2082/83: Over Rs. 3.8 Billion in Capital Expansion

Total Right Shares Under Preliminary Review: 38.22 million Total Value: Rs. 3.82 Billion Major Sectors Involved: Hydropower, Insurance, Investment, Manufacturing Hydropower holds the largest share of rights applications Insurance companies actively raising capital post-merger & regulatory compliance SEBON applying strict scrutiny: additional documents, updates, revised ratios Right-share activity expected to rise in FY 2082/83

Sandeep Chaudhary

·

13 Nov, 2025

Nepal’s Biggest IPO Pipeline Revealed: Over Rs. 52 Billion in Upcoming Issues
#NepalIPO #SEBON #NEPSE #Nepal

2 min read

Nepal’s Biggest IPO Pipeline Revealed: Over Rs. 52 Billion in Upcoming Issues

Total IPO pipeline: Rs. 52.15 Billion, 354.52 Million Shares Largest sector: Hydropower (Rs. 16.26B) Second largest: Manufacturing/Cement (Rs. 27.04B) Diversified sectors: Hotels, Hospitals, Aviation, Media, Investment, Micro-Insurance SEBON scrutiny has increased, ensuring transparency 2082/83 expected to be one of the busiest IPO years in NEPSE history

Sandeep Chaudhary

·

13 Nov, 2025

Government Revenue Payment Limits in Nepal: Updated Digital & Banking Thresholds Explained
#GovernmentRevenue #DigitalPay

2 min read

Government Revenue Payment Limits in Nepal: Updated Digital & Banking Thresholds Explained

Government revenue can now be paid through multiple digital channels in Nepal, each with its own transaction limits. CorporatePay supports the largest payments up to NPR 30 crore, while connectIPS web allows up to NPR 20 lakh and the mobile app up to NPR 2 lakh. NepalPay QR, mobile banking, and digital wallets offer smaller limits suitable for everyday transactions. Internet banking supports payments up to NPR 20 lakh. Bank branches allow up to NPR 5 crore when paying within the same bank, and up to NPR 20 lakh when paying through a different bank. Limits may vary by issuer, so users should confirm with their respective banks.

Sandeep Chaudhary

·

13 Nov, 2025

Documents Required for China Visit Visa from Nepal
#ChinaVisitVisa #ChinaVisaNepa

1 min read

Documents Required for China Visit Visa from Nepal

To apply for a China Visit Visa from Nepal, applicants must submit a valid passport, a completed visa form, a recent photo, proof of travel arrangements, financial evidence, and, where applicable, an invitation letter. Accuracy and completeness are crucial for approval. Applications must be submitted in person at the Chinese Visa Application Centre in Kathmandu. Proper documentation and professional guidance help ensure timely approval and smooth processing.

Sandeep Chaudhary

·

12 Nov, 2025

Top Reasons for Chinese Visa Rejection and How to Avoid Them (Nepal Guide)
#ChinaVisaNepal #VisaRejection

2 min read

Top Reasons for Chinese Visa Rejection and How to Avoid Them (Nepal Guide)

Chinese visa rejection for Nepali citizens often results from incomplete documents, unclear visit purposes, or weak financial proofs. Maintaining document consistency, ensuring passport validity, providing proper financial records, and attending biometric appointments on time can greatly improve approval chances. Always apply under the correct category and use a professional visa consultant to avoid costly delays or denials.

Sandeep Chaudhary

·

12 Nov, 2025

Do Nepali Citizens Need a Visa for Hong Kong or Macao?
#HongKongVisaNepal #MacaoVisaN

2 min read

Do Nepali Citizens Need a Visa for Hong Kong or Macao?

Nepali citizens require visas to visit both Hong Kong and Macao. Applications must be submitted in advance through official channels in Kathmandu. Hong Kong visas are processed by the Hong Kong Immigration Department, while Macao visas are handled by the Macao Public Security Police Force. There is no visa-free or on-arrival facility for Nepali passport holders. Travelers are advised to prepare documents early, verify validity, and apply through authorized agencies for timely processing

Sandeep Chaudhary

·

12 Nov, 2025