medium · Volume Spread Analysis effort-vs-result-spread
A stock experiences a 'Shakeout' on Day 1 (Wide down, ultra-high volume, closes high). Day 2 is a 'Test' (Dips, low volume, closes high).
What does the 2-day composite bar tell the practitioner?
- The composite is an Upthrust since price recovered off the lows by the close.
- The ultra-high volume on the composite bar alone makes this qualify as a 'Buying Climax'.
- The composite is a 'super-test' that confirms supply removal with higher conviction.
- The composite is weak overall since the combined two-day volume reads so high.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis effort-vs-result-spread practice
- During a market decline, a stock produces a down-bar on a na… — What does this 'No Selling
- Which of the following describes 'Falling Pressure'?
- A stock has been trading in a range between $40 and $45 for… — How would a practitioner ca
- An index has been rising steadily for three weeks. Today, th… — How should this activity b
- An equity is in a steady uptrend. Today, it produces an up-b… — What is the most likely pr
- What is the most likely scenario?
- A stock is rising on wide spreads and high volume. Suddenly… — What principle describes th
- An equity averages a daily volume of 1,000,000 shares. Today… — How should this volume lev