medium · Volume Price Analysis

If a Spring is followed immediately by a 'No Supply' bar, what does this tell the VPA practitioner about the state of the market?

1. The market is likely to enter a new markdown phase as the lack of supply also implies a lack of buying interest.
2. The Spring was a failure because the following bar did not have enough volume to sustain the recovery.
3. The market is ready for an immediate markup because the Spring cleared out the weak hands and the No Supply bar confirmed no sellers remain.
4. A 'No Demand' bar is more likely to follow a Spring, signifying that the insiders have moved on to other instruments.

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