hard · Volume Spread Analysis effort-vs-result-spread
What is the 'Critical Distinction' when interpreting 'Effort versus Result' in a wide-spread up-bar on ultra-high volume that closes in the middle of the range?
- The ultra-high volume indicates a 'Successful Test' of the upside, confirming a breakout.
- The effort (volume) failed to produce a bullish result (wide spread/high close), indicating that supply has swamped the demand.
- The narrow spread relative to the volume indicates that the market is in a 'No Demand' state.
- The result (the high volume) confirms that the effort (the price move) was supported by professional buying.
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