Supply Swamping Demand

Volume Spread Analysis Glossary

An extreme version of Supply Overcoming Demand: very high volume on an up-bar followed by an immediate market failure, showing that the supply has not merely overcome demand but overwhelmed it. The pattern is often the signal that triggers panic, and a swift, sharp decline typically follows. When combined with weakness already in the background, it is one of the most aggressive short signals in the catalogue.

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