medium · Volume Spread Analysis effort-vs-result-spread
An institutional-grade VSA practitioner observes a 'failed test' characterized by a probe below support and a high close, but on ultra-high volume.
Why is this considered an 'effort without result'?
- The massive volume shows supply is still active, so the 'effort' to clear the market failed.
- The failed test is actually a sign of strength because of the high close position.
- Retail traders are using the failed test to enter long positions ahead of professionals.
- The high volume shows the result was successful because it triggered many stops.
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