medium · Volume Spread Analysis effort-vs-result-spread
A practitioner identifies a 'Bearish Two-Bar Reversal' where Bar 1 is a wide-spread up-bar on ultra-high volume and Bar 2 is a wide-spread down-bar closing below Bar 1's low.
Where is the most logical place to set the stop-loss for a short position?
- Just above the high of Bar 1
- At the closing price of Bar 2
- At a round number near the high of Bar 1
- Below the low of Bar 2
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'? (SOW 3.7)
- 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