medium · Volume Spread Analysis effort-vs-result-spread
A stock in a mark-up phase produces an up-bar with a narrow spread and volume that is significantly lower than the previous two sessions.
What does this signal represent in the trending system?
- The market is pausing to allow the RSI to cool down.
- Absorption of overhead supply.
- A bullish signal to add to the position on the next higher close.
- Professional money is not interested in higher prices at this time.
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