easy · Volume Spread Analysis background-trend-context
A stock is trading at $50. A down-bar occurs on low volume, closing in the middle of its range, with a narrow spread.
What does this 'no selling pressure' signal suggest?
- The market is weak here and will soon collapse under selling
- A buying climax now appears imminent for this rising stock
- The market is ready to rise because professional sellers are absent.
- The stock is quietly being distributed here by strong, well-informed holders
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