hard · Volume Spread Analysis effort-vs-result-spread
A practitioner sees an 'Up-Thrust After Distribution' (UTAD) on a daily chart. The index has been sideways for 6 weeks. The UTAD bar volume is 2.5× average, and the next bar is a wide spread down.
How does this compare to a standard 'Up-Thrust' ?
- A UTAD requires low volume to be valid, whereas a standard Up-Thrust requires high volume.
- The standard Up-Thrust is more dangerous because it can occur unexpectedly in a rising market.
- The UTAD is more significant because it occurs after the 'cause' of distribution has been built, signaling the start of the mark-down.
- They are identical in significance and always lead to the same price objective.
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