medium · Volume Spread Analysis effort-vs-result-spread
A stock breaks below a long-term trend support line on a wide-spread bar with volume 2.8× average. However, the bar closes in the upper 20% of its range.
What does this 'Effort versus Result' analysis suggest?
- The high volume contained massive professional buying (Absorption), and the breakdown is likely a 'Shake-Out'.
- The trend line is broken, and the high volume confirms a new mark-down phase has begun.
- The 'No Selling Pressure' signal is confirmed because the price failed to stay below the line.
- The market is in a 'Mushroom Top' phase where volume spikes indicate the final distribution.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis effort-vs-result-spread practice
- An equity averages a daily volume of 1,000,000 shares. Today… — How should this volume lev
- An equity is in a steady uptrend. Today, it produces an up-b… — What is the most likely pr
- What exactly is being 'Tested'?
- Which of the following describes 'Falling Pressure'? (SOW 3.7)
- During a market rally, a market-maker expects still higher p… — What does this indicate?
- A stock has been trading in a range between $40 and $45 for… — How would a practitioner ca
- A stock is rising on wide spreads and high volume. Suddenly… — What principle describes th
- An index has been rising steadily for three weeks. Today, th… — How should this activity b