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 because it shows there are no sellers left.
- The market-makers are being generous by allowing the price to rise easily.
- The move is hollow and likely to fail because professional participation is absent.
- The wide spread is the only data point that matters for confirming a breakout.
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