Selling Pressure

Volume Spread Analysis Glossary

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.

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