hard · Volume Spread Analysis background-trend-context
A market has spent six months building a wide trading range after a long uptrend. Within the range, each successive rally attempt reaches a similar high on progressively lower volume, while each reaction low is defended on progressively higher volume.
What does this internal volume pattern reveal about the true background character of the range?
- Supply fades at the top while demand absorbs the lows, tilting the background toward markup.
- The range is a pure re-accumulation zone, guaranteeing an immediate breakout to new highs.
- Weakening rallies and rising volume on the lows both point to an unfolding distributive top.
- The pattern is contradictory noise and offers no reliable read on the range's eventual direction.
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