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?

  1. Neither buyers nor sellers show real interest in the stock at this particular price level.
  2. A sign of absorption, where professionals are quietly clearing out the last few remaining sellers here.
  3. Professional selling is so heavy that it is 'capping' any attempt by buyers to move the price higher.
  4. The market is simply resting and consolidating quietly, gathering strength before another explosive move higher.

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