easy · Volume Spread Analysis effort-vs-result-spread
How does Volume Spread Analysis interpret a 'Narrow Spread' on an up-bar with high volume closing on the low?
- Neither buyers nor sellers are interested in the stock at this price.
- It is a sign of absorption where professionals are clearing out the last few sellers.
- Professional selling is so heavy that it is 'capping' any attempt by buyers to move the price higher.
- The market is resting and consolidating before another explosive move higher.
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