hard · Volume Spread Analysis
After identifying stopping volume, the market produces a low-volume test. However, over the next three bars, the price drifts sideways to slightly lower instead of moving up.
How should this 'Negative Response' be interpreted?
- Supply is being absorbed quietly via a mushroom bottom.
- The market is preparing for an ultra-wide breakout.
- The strength indicated by the stopping volume has been discounted.
- A successful shake-out is currently in progress.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis practice
- An equity averages a daily volume of 1,000,000 shares. Today… — How should this volume lev
- While observing a downtrend, you see a bar that dips into fr… — What does this indicate to
- A stock gaps up $3.00 on a positive earnings report after a… — How should this scenario be
- The S&P $500 index drops 5% over a week. During this same pe… — What is this 'relative str
- During a distribution phase, how do professionals use 'Good News' to facilitate their stra
- A 'Failed Test' is identified when a price probe into a prio… — What does this signal to t
- A 'No Demand' bar is identified by a narrow spread up-bar wi… — Why does this signal often
- In the Accumulation phase, why does volume typically remain low on rallies within the trad