No Supply
Volume Spread Analysis glossary · Climaxes, Tests, Springs & Upthrusts
Definition
A down-bar whose volume is lower than the volume of the previous two bars (or low relative to the 20-bar average), showing that professional selling is absent as the market falls. It is the simplest of the strength signals—purely a volume observation—and works best when there is already strength in the background, or following a minor sign of weakness within an established uptrend. The next bar should be up; in an uptrend, expect continuation, while in a downtrend it may only produce a temporary pause.
No Supply in plain English
No Supply is the simplest sign that a market probably won't keep falling: price drops on a down-bar, but the volume is lower than the last two bars (or low versus the recent average), meaning the pros aren't bothering to sell. "Supply" here just means selling pressure — so low volume on a down move signals sellers have gone quiet. It's like a store lowering prices and still nobody's dumping the item; there's just no eagerness to sell. It works best when strength is already in the background, and you'd expect the next bar to be up — real follow-through in an uptrend, maybe just a brief pause in a downtrend.
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