medium · Volume Spread Analysis effort-vs-result-spread
Which of the following volume-spread characteristics would most strongly suggest a genuine breakdown in a stock that has been trending down, rather than a climactic shakeout?
- Low volume on down-bars as the price nears a well-known support level nearby.
- Widening spreads on down-bars with volume increasing on each subsequent decline.
- A sudden spike in volume occurring on a narrow-spread down-bar near a support level.
- High volume on an up-bar that still fails to reach any meaningful new high in this trend.
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