medium · Volume Spread Analysis effort-vs-result-spread
A stock is trending upward. As it approaches its upper supply trend line, the spread narrows and the volume decreases to 0.6 times the average.
What is the most likely outcome according to trend boundary logic?
- The trend line will hold and price will likely reverse toward the support line due to No Demand.
- The trend will accelerate because there is no selling pressure at the supply line.
- The price will gap through the trend line as professionals move through thin air.
- A massive breakout is imminent as the narrow spread shows professionals are 'capping' the price.
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