medium · Volume Spread Analysis effort-vs-result-spread
A practitioner observes a 'Falling Pressure' signal. Which of the following correctly describes its characteristics and meaning?
- A narrow-spread down-bar on high volume; it clearly shows professionals are aggressively selling into the nearby support level zone.
- A wide-spread down-bar on low volume, closing on the low; it suggests the decline is losing momentum as professionals are not driving it.
- A bar that closes in the upper third of its range during a downtrend on low volume, indicating a successful test of support today.
- A wide-spread up-bar on low volume; it shows the path of least resistance is up because sellers have essentially withdrawn from this market.
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