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.
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