medium · 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 considered valid, whereas a standard Up-Thrust always requires much higher trading volume.
- The standard Up-Thrust is generally more dangerous, since it can occur totally unexpectedly within an otherwise healthy, 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 entirely identical in structural significance and overall market meaning, always leading to the exact same downside price objective.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis effort-vs-result-spread practice
- During a market decline, a stock produces a down-bar on a na… — What does this 'No Selling
- Which of the following describes 'Falling Pressure'?
- A stock has been trading in a range between $40 and $45 for… — How would a practitioner ca
- An index has been rising steadily for three weeks. Today, th… — How should this activity b
- An equity is in a steady uptrend. Today, it produces an up-b… — What is the most likely pr
- What is the most likely scenario?
- A stock is rising on wide spreads and high volume. Suddenly… — What principle describes th
- An equity averages a daily volume of 1,000,000 shares. Today… — How should this volume lev