medium · Volume Spread Analysis effort-vs-result-spread
In the context of 'Effort versus Result', what is the bearish implication of a wide-spread up-bar on high volume that is immediately followed by a down-bar?
- The market is merely pausing here to consolidate its recent gains before resuming a higher breakout move
- The subsequent down-bar reflects only a lack of real selling pressure, which confirms strength in the previous up-move
- Professional operators are deliberately shaking out weak short-sellers here in order to fuel the next leg of the advance higher
- The high volume on the up-bar was absorbed by professional selling, meaning the effort to rise yielded no result.
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