medium · Volume Spread Analysis effort-vs-result-spread
A stock is rising on expanding volume and wide spreads. It hits a level where the next three bars have very narrow spreads but the volume remains ultra-high. The closes are all in the middle.
What does this 'result' suggest about the 'effort'?
- This is 'no demand,' suggesting that professional operators have essentially finished their mark-up phase.
- The trend is strengthening because the high volume shows everyone is now actively participating in this powerful move.
- The market is quietly 'absorbing' the supply here and will likely surge higher once sellers are exhausted.
- The 'effort' to rise is being met by 'hidden selling' or supply entering, indicating the end of the rising market.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis effort-vs-result-spread practice
- During a market decline, a stock produces a down-bar on a na… — What does this 'No Selling
- Which of the following describes 'Falling Pressure'?
- A stock has been trading in a range between $40 and $45 for… — How would a practitioner ca
- An index has been rising steadily for three weeks. Today, th… — How should this activity b
- An equity is in a steady uptrend. Today, it produces an up-b… — What is the most likely pr
- What is the most likely scenario?
- A stock is rising on wide spreads and high volume. Suddenly… — What principle describes th
- An equity averages a daily volume of 1,000,000 shares. Today… — How should this volume lev