medium · Volume Spread Analysis effort-vs-result-spread
A stock rallies $4.00 into fresh highs. The volume is 3.5× average and the spread is wide, but the close is in the lower 20% of the bar.
What does this 'hidden' characteristic reveal?
- Professionals are absorbing the sellers to move higher.
- This is a healthy breakout on high volume.
- The market is showing a 'Successful Test' of higher prices.
- Supply has swamped demand during the session.
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