easy · Volume Spread Analysis effort-vs-result-spread
During a mark-up phase, a stock produces a wide-spread up-bar on low volume.
How should a practitioner interpret this lack of effort?
- Low volume on an up-move is bullish since it shows sellers left the stock.
- Some assume market-makers are simply generous, letting price rise easily with no real resistance.
- The move is hollow and likely to fail because professional participation is absent.
- The wide spread alone confirms the breakout; volume is a secondary detail to ignore.
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