medium · Volume Spread Analysis effort-vs-result-spread
A practitioner identifies 'Absorption Volume' in a stock. Which subsequent bar behavior would be required to confirm that the professional buying was genuine?
- A series of high-volume up-bars with widening spreads, confirming that fresh demand keeps entering the market steadily.
- A subsequent 'Test' on low volume that closes in the upper portion of the bar, confirming supply has been removed.
- An immediate 'Buying Climax' right after this, which proves the public has joined the professional move.
- A 'Gap-Up' opening on ultra-high volume with a narrow spread, pushing directly into fresh new high ground above resistance.
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