easy · Volume Spread Analysis effort-vs-result-spread
Current volume is 1.5 million shares and the 20-bar average is 1.0 million. No additional confirmation has appeared yet.
Before acting, what is the most disciplined conclusion about “relative volume ratio”?
- Treat the observation as provisional evidence consistent with high effort with little result, then compare background and subsequent bars before increasing confidence.
- Relative volume is 1.5 times the stated average; that comparison becomes meaningful only when paired with spread, close, location, and background.
- Treat the observation as provisional evidence consistent with low effort with little result, then compare background and subsequent bars before increasing confidence.
- Treat the observation as provisional evidence consistent with effort-result confirmation, then compare background and subsequent bars before increasing confidence.
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