hard · Volume Spread Analysis background-trend-context
Following a spring and mark-up, the practitioner observes a 'no demand' bar at the upper trend line of a channel.
If the background shows strong accumulation, how does this change the interpretation compared to 'no demand' after distribution?
- In a strong background, no demand may only be a temporary pause or a 'lull' in professional activity, and should not be used as a short signal without an upthrust.
- No demand is a universal reversal signal; its appearance at a trend line confirms that the bull move is over regardless of the background.
- The practitioner should double the position size because the low volume proves there is no selling pressure at the resistance level.
- The no-demand bar at the trend line is actually a 'test of supply' because it occurs on low volume during an uptrend.
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