hard · Volume Spread Analysis effort-vs-result-spread
A stock in a confirmed up-trend forms a narrow-spread up-bar on noticeably below-average volume, a textbook 'no demand' warning. Two bars later, the same stock produces a wide-spread down-bar on the heaviest volume of the entire trend, closing on its low.
What does this two-bar sequence reveal about the effort-versus-result relationship driving the trend?
- Only the heavy-volume down-bar matters here; the earlier light-volume up-bar is background noise with no diagnostic weight.
- Effort and result matched on both bars, so the sequence is balanced and offers no early warning about the trend's health.
- The light-volume up-bar was actually quiet absorption, so the heavy decline after it is only a brief shakeout before the up-trend resumes.
- The low-effort bar warned demand was fading, and the later heavy-volume, high-result bar confirms supply has taken control.
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