Demand Overcoming Supply

Volume Spread Analysis Glossary

A subtle sign of strength detected on a down-bar where the close is off the lows and the volume pattern shows that buying is beginning to enter the market—the bar shows some support (close not at the low, low being held) despite the overall downward movement. On its own, this signal may be insufficient, especially in a strong downtrend; it requires confirmation from the next bar (which should be up) and supporting strength in the background. With weakness in the background, there may still be too much supply for a rally.

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