medium · Volume Spread Analysis background-trend-context
An index approaches a prior market low from six months ago. As it nears the level, spreads narrow and volume drops to 50% of average.
What does this indicate about the 'Old Low'?
- The Professionals are 'marking down' the market to hunt stops
- A 'Selling Climax' is imminent at the breakthrough point
- This is a 'Failed Test' and the market will collapse
- There is no selling pressure, so the support level is likely to hold
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