easy · Volume Spread Analysis background-trend-context
In the context of 'relative strength,' why would a stock that refuses to fall while the parent index is declining be considered a strong background?
- Retail traders are 'bag holding' the stock, which mechanically prevents it from dropping further.
- The stock has no trading volume at all, which is why it cannot move downward.
- It suggests the stock is disconnected from the economy and simply moves at random.
- It indicates professional accumulation is actively absorbing any available sell orders.
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