medium · Volume Spread Analysis effort-vs-result-spread
A stock has a 20-day average volume of 1.0 million. Today, it produces a wide-spread down-bar on 2.6 million shares and closes near the high.
How would you classify this volume and what is the likely interpretation?
- Ultra-high volume; the market shows 'Falling Pressure' clearly.
- Average volume, roughly matching the 20-day norm; the market sits in equilibrium.
- Low volume on the down-bar; professionals appear to be quietly withdrawing from the market.
- Ultra-high volume; professionals are absorbing the selling (Stopping Volume).
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