medium · Volume Spread Analysis background-trend-context
A stock produces a wide-spread down-bar that closes on its high with high volume in a established downtrend. This is followed by another down-bar with a narrow spread and very low volume.
What does this confirm?
- Professional support (Stopping Volume) followed by an absence of selling pressure.
- Supply has overcome demand, so the markdown will continue aggressively.
- A trap down-move designed to catch eager short-sellers before a further collapse.
- The market has simply entered a 'No Demand' phase and will drift sideways for a long while yet.
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