Bag Holding

Volume Spread Analysis Glossary

A situation in which professionals who have been accumulating stock find the price drifting below their average purchase level and must now support the stock to prevent further declines that would erode their position. On the chart it manifests as persistent support of the daily lows—each bar's low is held at or above a specific level despite selling pressure, and volume on down-moves is absorbed. It is bullish because it confirms professional commitment: the operators must eventually push prices higher to profit on their accumulated position, or they lose money on it.

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