medium · Volume Spread Analysis effort-vs-result-spread

A stock is in a confirmed uptrend. It pullbacks to its 20-day moving average on a narrow spread and the volume is lower than the previous two bars. This 'No Selling Pressure' signal is best interpreted as:

  1. A 'No Demand' signal, warning that the bull run is about to end.
  2. A sign that the 'Effort' to rise has failed, so a sharp reversal is imminent.
  3. A bullish confirmation that professionals are not participating in the decline
  4. A classic 'Shake-out', engineered specifically to trap eager short sellers.

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