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
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'? (SOW 3.7)
- 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