medium · Volume Spread Analysis effort-vs-result-spread
An equity is in a steady uptrend. Today, it produces an up-bar with ultra-high volume (RV > 2.50), but the spread is extremely narrow and the price closes in the middle of the bar.
What is the most likely professional intent behind this activity?
- The market-maker is aggressively marking up prices to reflect high demand.
- The narrow spread shows a lack of retail interest despite high professional buying.
- The market-maker is selling into the retail demand to cap the price.
- Professional traders are withdrawing from the market, leading to thin trading.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis effort-vs-result-spread practice
- During a market decline, a stock produces a down-bar on a na… — What does this 'No Selling
- Which of the following describes 'Falling Pressure'?
- A stock has been trading in a range between $40 and $45 for… — How would a practitioner ca
- An index has been rising steadily for three weeks. Today, th… — How should this activity b
- What is the most likely scenario?
- A stock is rising on wide spreads and high volume. Suddenly… — What principle describes th
- An equity averages a daily volume of 1,000,000 shares. Today… — How should this volume lev
- During a market rally, a market-maker expects still higher p… — What does this indicate?