medium · Volume Spread Analysis effort-vs-result-spread
A practitioner observes an up-bar into fresh high ground with a very narrow spread, but the volume is ultra-high.
How does the 'End of a Rising Market' principle explain this?
- This is a 'No Demand' bar indicating a temporary pause
- Market-makers are capping the price by selling into the demand
- The high volume represents 'Absorption Volume' of old resistance
- The narrow spread shows that buyers are in complete control
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