medium · Volume Spread Analysis background-trend-context
An up-bar has volume lower than the previous two bars and a narrow spread, closing in the lower third. This occurs after a series of high-volume up-bars with narrow spreads.
What is the interpretation?
- No Selling Pressure, confirming the path of least resistance is up.
- A successful test of the breakout, indicating the market is ready to rise.
- Absorption volume where professionals are slowly buying the remaining supply.
- No Demand following distribution; the professionals are no longer supporting the rally.
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