I don't really understand the volume shelves and gaps. If a stock has a large shelf, why would the area below with lower volume mean there's an easier time for it to fall to the next shelf? Wouldn't the higher shelf imply that people are willing to pay more and consider that a fair price? Couldn't the low volume in-between area simply be due to the price spending very little time there? I assume areas of consolidation would have more volume.
I don't really understand the volume shelves and gaps. If a stock has a large shelf, why would the area below with lower volume mean there's an easier time for it to fall to the next shelf? Wouldn't the higher shelf imply that people are willing to pay more and consider that a fair price? Couldn't the low volume in-between area simply be due to the price spending very little time there? I assume areas of consolidation would have more volume.