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 taking a healthy breather before a higher breakout.
- The down-bar reflects a lack of selling pressure, confirming the strength of the previous up-move.
- Professional operators are shaking out weak short-sellers before the next leg up.
- The high volume on the up-bar was absorbed by professional selling, meaning the effort to rise yielded no result.
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