easy · Volume Spread Analysis effort-vs-result-spread
A stock rallies into new high ground on wide spreads and high volume. On the fifth day, the price makes a new high but closes in the lower third on ultra-high volume. The following day is a down-bar.
What 'Result' has the 'Effort' produced?
- The effort to rise has resulted in weakness, as the supply swamped the demand and prevented a high close.
- The result is indecisive because the market made a new high, suggesting buyers are still in control.
- The high volume indicates a 'churning' of positions that will lead to a continuation once the sellers are exhausted.
- The effort has resulted in a successful breakout that is simply being 're-tested' by the down-bar.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis effort-vs-result-spread practice
- An equity averages a daily volume of 1,000,000 shares. Today… — How should this volume lev
- An equity is in a steady uptrend. Today, it produces an up-b… — What is the most likely pr
- What exactly is being 'Tested'?
- Which of the following describes 'Falling Pressure'?
- During a market rally, a market-maker expects still higher p… — What does this indicate?
- A stock has been trading in a range between $40 and $45 for… — How would a practitioner ca
- A stock is rising on wide spreads and high volume. Suddenly… — What principle describes th
- An index has been rising steadily for three weeks. Today, th… — How should this activity b