medium · Volume Spread Analysis Background, Trend & Context
A stock has been rising for four months. It reaches new highs on a narrow-spread up-bar with ultra-high volume. The next day is a wide-spread down-bar.
This two-bar sequence is most likely:
- A 'bag holding' sign of strength.
- A healthy re-accumulation phase.
- Supply Overcoming Demand.
- Absorption of overhead supply.
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