No Supply Bar
Volume Price Analysis glossary · Testing Supply/Demand & Continuation Signals
Definition
A down candle with narrow spread and low volume, indicating absence of selling interest; confirms sellers have been absorbed.
No Supply Bar in plain English
This is the mirror image of a No Demand bar. A No Supply bar closes DOWN (lower than it opened) but is short and comes on very LOW volume. The idea: for prices to keep falling you need a flood of sellers dumping shares, and low volume proves that flood isn't there — the sellers have dried up or been quietly bought out ("absorbed") by big players. Picture a leaky bucket where the leak has basically stopped: the water isn't draining anymore, so the price is far more likely to hold or turn back up than to keep dropping.
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