easy · Volume Price Analysis
In VPA, how does a practitioner distinguish between 'No Demand' and 'Absorption' at a market peak?
- No Demand is characterized by low volume; Absorption is characterized by high volume.
- No Demand occurs mainly at support levels, while Absorption occurs at resistance.
- No Demand is generally read as a bullish signal, while Absorption is read as a bearish one.
- No Demand tends to show wide price spreads, whereas Absorption tends to show narrow spreads instead.
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