medium · Volume Spread Analysis background-trend-context
A stock has been in a sustained rally for four months. After a three-day pause, price produces a wide spread up-bar that makes a fresh new high on ultra-high volume, closing on the absolute high of the session. However, the background already contains two instances of narrow-spread up-bars on high volume.
What is the most probable professional action occurring on this latest bar?
- Genuine breakout and mark-up continuation
- Institutional re-accumulation
- Absorption of overhead supply
- End of a rising market / Supply entering
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