easy · Volume Spread Analysis effort-vs-result-spread
Why is 'Relative Volume' more important than 'Absolute Volume' when assessing effort?
- Because high Absolute Volume is always bullish, whereas Relative Volume can be bearish.
- Because effort can only be judged by comparing today's intensity to a recent baseline of activity.
- Because Relative Volume is the only input used in the mathematical formula for Spread.
- Because Absolute Volume is often corrupted by market-makers' 90-minute delays.
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