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 appears, confirming the path of least resistance remains up.
- A successful test of the recent breakout level, signaling the market is ready to rise.
- Absorption volume, indicating professionals are quietly buying the remaining floating supply.
- No Demand following distribution; the professionals are no longer supporting the rally.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis background-trend-context practice
- Why is the 'Background' (previous activity) considered the most important factor when read
- A stock chart shows a 'low-volume test' at $38.50. The pract… — By shorting at this point
- A practitioner sees an 'up-thrust' (wide spread up, close on… — What does this 'negative r
- Suppose a stock is approaching a known resistance level. It… — How should a practitioner v
- After a period of distribution, the market attempts to rally… — What does this indicate?
- During a distribution phase, an up-thrust appears at the top… — How does this volume confi
- Does the current high-volume down-bar still represent a professional Shakeout?
- In the context of 'relative strength,' why would a stock that refuses to fall while the pa