easy · Volume Spread Analysis effort-vs-result-spread

When comparing two breakout attempts, Bar A has high volume and Bar B has ultra-high volume.

Why might Bar A be considered 'healthier' for a sustained trend?

  1. Bar B indicates that there are too many buyers
  2. Lower volume shows the market-makers are more bullish
  3. Ultra-high volume often contains hidden distribution
  4. Bar A has less 'noise' than Bar B

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