hard · Volume Spread Analysis background-trend-context
A 'Composite Bar' is created by combining three days of price action. The resulting bar has a wide spread, ultra-high total volume, and closes in the middle of the range.
If the background was a selling climax, what does this composite bar reveal?
- The market is in a phase of heavy absorption/accumulation
- The selling climax was a false signal and the markdown will continue
- A new bull market has already begun and price will markup immediately
- There is no demand in the market because the price didn't close on the high
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