Ann: New RC Drilling at KGP expands resource potential, page-29

VOLUME SPREAD ANALYSIS -

Prices have been rapidly marked up by professional traders, whose view of the market at that moment is bullish.

We know this because the volume has increased, substantially backing up the move.

It cannot be a trap up-move, because the volume is supporting the move. Wide spreads up are designed to lock you out of the market rather than attempting to suck you in. Volume shows a substantial and healthy increase – this is bullish volume.

Excessive volume, however, is never a good sign; this indicates ‘supply’ in the market, which is liable to be swamping the demand.
Low volume (gap/mark up ) warns you of a trap up-move (which is indicative of a lack of demand in the market).

An up-thrust shows that the market is becoming weaker. Prices will go up during the day (or bar) on a wide spread and come back to close on the low of the day on high volume. They arrive in varying degrees of intensities at market tops and are moneymaking manoeuvres that are designed to catch out traders.