medium · Volume Spread Analysis effort-vs-result-spread
An index rallies on $15 billion volume. The next day it rallies further on $10 billion volume, and the following day it rallies again on $7 billion volume. The spreads are narrowing each day.
What does this indicate?
- Absorption of supply as the market moves into new territory.
- A lack of demand as professionals are not participating in the rise.
- No selling pressure is present, ensuring the rally continues.
- The start of a parabolic mark-up phase.
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