medium · Volume Spread Analysis effort-vs-result-spread
A stock that has been trending up for months suddenly gaps up to new highs after a positive earnings report. The bar shows ultra-high volume but a very narrow spread, closing in the lower third.
How should this 'Scenario A' from the guide be diagnosed?
- Weak Gap-Up: Supply is entering as professionals distribute into euphoria.
- Successful Test: Professionals have found no sellers in new territory.
- Absorption Volume: Professionals are buying the locked-in sellers' stock.
- Strong Gap-Up: The professionals are marking up against demand.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis effort-vs-result-spread practice
- An equity averages a daily volume of 1,000,000 shares. Today… — How should this volume lev
- An equity is in a steady uptrend. Today, it produces an up-b… — What is the most likely pr
- What exactly is being 'Tested'?
- Which of the following describes 'Falling Pressure'?
- During a market rally, a market-maker expects still higher p… — What does this indicate?
- A stock has been trading in a range between $40 and $45 for… — How would a practitioner ca
- A stock is rising on wide spreads and high volume. Suddenly… — What principle describes th
- An index has been rising steadily for three weeks. Today, th… — How should this activity b