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?

  1. Retail traders are 'bag holding' the stock, which mechanically prevents it from dropping further.
  2. The stock has no trading volume at all, which is why it cannot move downward.
  3. It suggests the stock is disconnected from the economy and simply moves at random.
  4. It indicates professional accumulation is actively absorbing any available sell orders.

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