easy · Volume Price Analysis
How does 'Effort vs. Result' explain the narrowing bodies of candles during a stopping volume sequence?
- It indicates that the bid-ask spread is narrowing because of high liquidity.
- Rising volume (effort) failing to produce wider bearish bodies (result) indicates institutional absorption.
- It shows that retail panic is increasing and will soon lead to a price waterfall.
- The narrowing bodies prove that insiders have completely withdrawn from the market.
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