medium · Volume Spread Analysis background-trend-context
According to the principle of 'Strong Holders' versus 'Weak Holders', a bear market begins when:
- The herd panics and dumps its holdings on the bad news, producing a sudden burst of very high volume.
- Prices simply reach a level where the perceived value looks far too high to ordinary retail traders.
- Stock has been transferred from strong holders to weak holders, generally at a profit to the professionals
- Short sellers quietly enter the market on unusually low volume, which causes a slow, gradual, steady decline overall.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis background-trend-context practice
- Why is the 'Background' (previous activity) considered the most important factor when read
- A stock chart shows a 'low-volume test' at $38.50. The pract… — By shorting at this point
- A practitioner sees an 'up-thrust' (wide spread up, close on… — What does this 'negative r
- Historical data shows that indices can make new highs long a… — Why does this 'Market Rota
- What is the resulting Background Score, and what does it imply for a potential long trade?
- Suppose a stock is approaching a known resistance level. It… — How should a practitioner v
- After a period of distribution, the market attempts to rally… — What does this indicate?
- You are analyzing a stock that has been in an accumulation r… — What is the most likely cl