medium · Volume Spread Analysis Background, Trend & Context
A practitioner sees an up-bar with a narrow spread on high volume into new highs, followed by a wide-spread down-bar that closes below the low of the first bar.
This two-bar sequence is known as:
- A two-bar bullish reversal.
- A top reversal.
- Supply swamping demand.
- A shake-out followed by a test.
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