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    Volume Spread Analysis

    Uploaded by

    Muhammad Sohail
    This document defines volume and spread in stock market analysis. It outlines 7 types of volume from ultra high to less than average. It also outlines 8 signs of weakness, including an end of rising market signaled by a narrow up bar closing in the middle with very high volume after a bull run. Other signs include a buying climax wide spread bar closing off the high with ultra high volume and down bar after, and top reversals as two bar patterns with supply swamping demand.

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    Volume Spread Analysis

    Uploaded by

    Muhammad Sohail
    121 views4 pages
    This document defines volume and spread in stock market analysis. It outlines 7 types of volume from ultra high to less than average. It also outlines 8 signs of weakness, including an end of rising market signaled by a narrow up bar closing in the middle with very high volume after a bull run. Other signs include a buying climax wide spread bar closing off the high with ultra high volume and down bar after, and top reversals as two bar patterns with supply swamping demand.

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    This document defines volume and spread in stock market analysis. It outlines 7 types of volume from ultra high to less than average. It also outlines 8 signs of weakness, including an end of rising market signaled by a narrow up bar closing in the middle with very high volume after a bull run. Other signs include a buying climax wide spread bar closing off the high with ultra high volume and down bar after, and top reversals as two bar patterns with supply swamping demand.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    121 views4 pages

    Volume Spread Analysis

    Uploaded by

    Muhammad Sohail
    This document defines volume and spread in stock market analysis. It outlines 7 types of volume from ultra high to less than average. It also outlines 8 signs of weakness, including an end of rising market signaled by a narrow up bar closing in the middle with very high volume after a bull run. Other signs include a buying climax wide spread bar closing off the high with ultra high volume and down bar after, and top reversals as two bar patterns with supply swamping demand.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    Volume Spread Analysis

    Define Volume:
    Total order executes in market like buy or sell.

    Define Spread:
    Size Distance between high to low.

    VOLUME:
    Seven Types of Volume

    1. Ultra High volume


    2. Very high volume
    3. High volume
    4. Average
    5. Above Average
    6. Below average
    7. Less than previous two volumes (pink volume)

    Sign of Weakness
    Seven Types of SOW

    1. End of Rising Market


    2. Buying Climax
    3. Top Reversal
    4. No Result From Effort
    5. Wide Spread Down Bar Through Previous Support
    6. UP Thrust
    7. No Demand at Market Top
    8. No Demand in Down Trend
    End of Rising Market:
    It in a narrow spread gapped and up bar.

    Ultra high or very high volume

    Closing in middle or off the high

    Having a Strong bull run in the back ground

    Buying Climax:
    It is widespread / average spread up bar

    Volume ultra-high or very high with next bar down close

    Closing off the high or in middle or on the low

    Having a strong bull run in the background

    Top Reversal:
    It is a two bar sow, First bar is Wide spread up bar, closing on/off the high, with high volume (supply
    swamping demand) or low volume (no demand)

    It has three scenarios

    No Result from Effort:


    It is a two bar sow, First bar is wide spread up bar, closing on or off the high with high or ultra-high
    volume. Second bar is a normal spread or wide spread down bar (rarely an up bar) closing near its low.
    If the second bar low close are lower than the first previous bar low than it is a strong sow.

    Wide Spread Down Bar Thorough Previous Support:

    It is a widespread down bar closing OFF/ON the low on increased volume (Wi-Fi volume & not excessive
    ultra-high) through previous support (possible range) with next bar down after an up move.

    UP Thrust:

    It is a widespread or average spread bar closing anywhere between middle to low on higher and lower
    volume.

    The high of the bar is higher than the previous high of the bar, up bar is called Regular up-thrust and
    down bar clone hidden up-thrust.

    High volume up-thrust means quick buying then selling from smart money.

    Low volume up-thrust mean no interested in upside from smart money.

    No Demand at Market Top:


    It is an up bar on volume lower than previous two volumes bars, generally spread is narrow or it can be
    wider, closing can be anywhere but must be higher than the previous bar is to qualify as an up bar.

    No Demand in a Down Trend:


    It is an up bar on volume lower the previous two volume bars, Generally Spread is narrow or it can be
    wider, closing can be anywhere but must be clone lower than previous bar clone is to qualify as an up
    bar.

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