medium · Volume Spread Analysis background-trend-context
A practitioner sees 'Stopping Volume' on a daily chart. To refine the entry, they look at the 15-minute chart and see a sequence of narrow-spread down-bars with progressively lower volume closing near the highs.
What does the intraday view confirm?
- The stopping volume was a 'trap down-move' and should be shorted
- The market-makers are marking prices down to hunt for buy-stops
- A 'Buying Climax' is occurring on the shorter timeframe
- The supply is being systematically absorbed through testing
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