hard · Volume Spread Analysis effort-vs-result-spread
A VSA practitioner observes 'Supply Swamping Demand.' What is the expected 'result' in price action following this 'effort'?
- A low-volume test of the highs, confirming that the remaining sellers have finally been exhausted completely.
- An immediate and sharp decline in price, as the extreme volume on the up-bar was clearly professional distribution.
- The market should simply consolidate sideways in a narrow range as professionals quietly recharge for the next markup leg.
- The price should gap sharply higher to extend the bullish momentum well further before any professional selling even starts.
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