Selling Pressure
Volume Spread Analysis glossary · Effort vs Result & Spread/Close Analysis
Definition
A wide-spread down-bar on increased volume, closing on or near the lows, showing professionals actively pushing prices down. It can appear at any point in a down-move but is most significant when appearing after distribution. If the next bar is also down, the selling is confirmed and bearish continuation is expected; if the next bar is up, some buying entered the high-volume bar and the market needs a test for remaining supply. Selling pressure is the bearish counterpart of stopping volume—active professional selling, rather than absorption.
Selling Pressure in plain English
'Selling pressure' is the chart showing you professionals actively shoving prices down, not just letting them drift. It looks like a tall down-bar (a big drop from top to bottom) on heavier-than-usual volume that closes right near its low — like a crowd all pushing a car downhill at once. If the next bar also falls, the push is real and more drops are likely; but if the next bar rises, it means some buyers were quietly grabbing shares inside that big bar, so the market has to be 'tested' to see if selling is truly finished. It's the bearish twin of stopping volume: here pros are dumping, whereas stopping volume is pros soaking up the selling.
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Practice Selling Pressure
Which description best defines “secondary test of a selling climax” in this curriculum?
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