medium · Volume Price Analysis climactic

How does 'Effort vs. Result' explain the narrowing bodies of candles during a stopping volume sequence?

  1. It indicates the bid-ask spread is narrowing purely because of high liquidity in the order book.
  2. Rising volume (effort) failing to produce wider bearish bodies (result) indicates institutional absorption.
  3. It shows retail panic is building and will soon trigger a full price waterfall lower.
  4. The narrowing bodies prove insiders have fully and permanently withdrawn from participating in this market.

Sign up free to see the explanation and track your rank →

More Volume Price Analysis climactic practice

KomFi: Test Prep Made Easy

KomFi: Test Prep Made Easy — free adaptive practice for GMAT, GRE, SAT, ACT, National Real Estate Exam, Investment Banking, and finance with full explanations.

KomFi Academy is free GMAT prep and personalized GMAT help built as a training platform: 92,240+ practice questions, 30,500+ flashcards, on-demand video lectures, podcasts, and 4K slide decks. Flagship tracks: Free GMAT Prep, Free GMAT Resources, National Real Estate Exam Prep, Investment Banking Prep, Finance Prep, GRE, SAT, ACT, LSAT, MCAT, Financial Accounting, Private Equity, Private Credit, and Quantitative Finance.

Free GMAT Prep & Personalized GMAT Help

What's inside

Topics

View pricing · Read testimonials