medium · Volume Spread Analysis effort-vs-result-spread
A stock has been in a sustained bull market for several months and reaches new highs on a wide-spread up-bar with ultra-high volume, yet the price closes in the middle of its range.
What does this specific structural mechanic indicate regarding the professional money?
- The professionals are selling into the retail buying frenzy, capping the upside potential.
- The ultra-high volume suggests a massive institutional buy-in that guarantees higher prices.
- The wide spread confirms a strong effort to rise that will likely be met with further demand.
- This represents a healthy absorption of profit-taking that will lead to a continuation move.
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