medium · Volume Spread Analysis effort-vs-result-spread
If a stock is 'holding the bag' (Bag Holding, ), how will its price-volume action typically compare to the broad index?
- The stock will refuse to fall when the index makes new lows, showing supported price levels on low or absorbed volume.
- The stock will move with 'Ultra-High Volume' on every up-bar, leading the index higher.
- The stock will show 'falling pressure' with wide spreads and low volume, indicating a lack of professional interest.
- The stock will gap down every morning to match the index, then rally on no demand.
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