easy · Volume Spread Analysis effort-vs-result-spread
A stock resists an index-wide decline, trading sideways while the parent index drops 5%.
What does this 'Relative Strength' suggest?
- Professional accumulation is occurring, as they are buying the stock on every dip.
- The stock is simply 'lagging' and will eventually fall twice as far as the index.
- The market-makers are trying to 'hide' the distribution by keeping the price high.
- There is a total absence of buyers and sellers, leaving the price stagnant.
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