medium · Volume Price Analysis
A stock opens the regular trading session with a wide-spread up candle, but the volume is 50% lower than the typical opening-bar average.
Why do practitioners often avoid entering long here?
- The spread is too wide for a standard stop loss to be placed safely.
- Market makers are likely 'probing' sentiment on low volume before committing.
- The low volume indicates the 'Public Participation' phase of the trend has ended.
- This is a classic 'No Supply' bar, signaling the start of a bearish waterfall decline.
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