medium · Volume Spread Analysis effort-vs-result-spread
Why is 'Ultra-High Volume' on a wide-spread up-bar into new high ground considered 'Dangerous' rather than 'Bullish'?
- It indicates that supply has entered the market and professionals are distributing into the frenzy.
- It signals that the Composite Operator has abruptly run out of capital needed to keep supporting the move.
- It means the market-maker is deliberately marking the price down in reaction to a fresh piece of good news.
- High volume always forces the price to crash immediately afterward due to simple mathematical gravity.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis effort-vs-result-spread practice
- An equity averages a daily volume of 1,000,000 shares. Today… — How should this volume lev
- An equity is in a steady uptrend. Today, it produces an up-b… — What is the most likely pr
- What exactly is being 'Tested'?
- Which of the following describes 'Falling Pressure'?
- During a market rally, a market-maker expects still higher p… — What does this indicate?
- A stock has been trading in a range between $40 and $45 for… — How would a practitioner ca
- A stock is rising on wide spreads and high volume. Suddenly… — What principle describes th
- An index has been rising steadily for three weeks. Today, th… — How should this activity b