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' and suggests that professional operators have finished their mark-up.
- The trend is strengthening because the high volume shows everyone is now participating in the move.
- The market is 'absorbing' the supply and will likely surge much higher once the 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
- 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