hard · Volume Spread Analysis effort-vs-result-spread
Within a well-defined trading range, price rallies to test the upper boundary on a wide-spread up-bar with volume roughly double the range average, yet the close sits only in the middle of the bar. The next bar is a narrow-spread down-bar on volume even higher than the prior day's, closing near its low.
What does this two-bar combination most likely signal about the range's outcome?
- Supply is overcoming demand right at resistance here, favoring an eventual downside break out of the range
- The heavy volume on both bars simply reflects rising public participation, so no directional bias can be drawn yet
- The wide-spread up-bar is an Up-Thrust absorbed entirely by demand, so the range should resolve upward
- The narrow-spread down-bar is a Shake-Out, meaning strong hands are still accumulating beneath the range
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