easy · Volume Spread Analysis effort-vs-result-spread
Three rallies show rising volume but each gains less distance than the prior rally.
Which cautious VSA reading best fits this “effort-result divergence” example?
- The shrinking result despite greater effort is a warning of possible opposition, not a guaranteed reversal signal.
- Large effort produced little net result, so opposing activity may be present; direction requires background and follow-through.
- The bar is relatively narrow in this local sample; that fact needs volume, close, and background for interpretation.
- Effort and result are aligned for this bar, but acceptance above resistance and later bars should confirm the move.
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