easy · Volume Spread Analysis effort-vs-result-spread
Three rallies show rising volume but each gains less distance than the prior rally. No additional confirmation has appeared yet.
Before acting, what is the most disciplined conclusion about “effort-result divergence”?
- Treat the observation as provisional evidence consistent with high effort with little result, then compare background and subsequent bars before increasing confidence.
- 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 divergence, 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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