easy · Volume Spread Analysis effort-vs-result-spread
Why is 'Relative Volume' more important than 'Absolute Volume' when assessing effort?
- High Absolute Volume is always bullish, while Relative Volume readings can instead be bearish.
- Because effort can only be judged by comparing today's intensity to a recent baseline of activity.
- Relative Volume alone is the sole input in the mathematical formula used to calculate Spread.
- Absolute Volume readings are frequently corrupted by market-makers' well-known ninety-minute reporting delays.
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