easy · Volume Spread Analysis background-trend-context
A practitioner observes a 'Spring' where the price briefly dips below an 8-week accumulation range support level of $45.00 on low volume, then closes back inside at $45.50.
What is the primary purpose of this maneuver by professional operators?
- To signal a genuine breakdown and start the mark-down phase.
- To test for no-demand at the upper boundary of the range.
- To encourage retail buyers to enter the market on the dip.
- To trigger stop-loss orders and acquire cheap stock from weak holders.
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