medium · Volume Spread Analysis effort-vs-result-spread
A trader identifies 'Bag Holding' in a stock. What specific observation would lead to this diagnosis according to VSA principles?
- The stock's spread keeps narrowing as it approaches a major overhead resistance line.
- Retail traders end up 'holding the bag' simply because they bought in near the very top of a sharp rally.
- The stock refuses to fall and its lows are supported even when the parent index is dropping sharply.
- The stock shows high volume on every up-bar, yet the price still fails to reach new swing highs.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis effort-vs-result-spread practice
- An equity averages a daily volume of 1,000,000 shares. Today… — How should this volume lev
- An equity is in a steady uptrend. Today, it produces an up-b… — What is the most likely pr
- What exactly is being 'Tested'?
- Which of the following describes 'Falling Pressure'?
- During a market rally, a market-maker expects still higher p… — What does this indicate?
- A stock has been trading in a range between $40 and $45 for… — How would a practitioner ca
- A stock is rising on wide spreads and high volume. Suddenly… — What principle describes th
- An index has been rising steadily for three weeks. Today, th… — How should this activity b