medium · Volume Spread Analysis climaxes-tests-springs-upthrusts
An index is rallying strongly to new highs, but a specific stock within that index is producing narrow-spread up-bars on RV < 0.70 (low volume).
What does this 'No Demand' scenario suggest regarding entry timing?
- Wait for the volume to triple from current levels before entering a long position to confirm momentum is truly building.
- The stock is a 'buy' since the low volume shows there is no meaningful supply left to resist the move higher.
- Immediately buy the stock; it is likely just a 'late bloomer' that will soon catch up to the broader index's strength.
- The stock is lacking professional support and should be monitored for a short entry once the index shows weakness.
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