medium · Volume Spread Analysis effort-vs-result-spread

What happens to the 'result' when the professional money 'steps aside' during a market decline?

  1. The spread narrows while the market awaits a scheduled news event.
  2. The price falls on low volume, often on wide spreads (falling pressure).
  3. The price gaps up sharply as market-makers hunt for resting sell stops overhead.
  4. The price halts its decline and moves sideways on notably high trading volume.

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