medium · Volume Spread Analysis background-trend-context
Background: A stock has just finished a period of accumulation. Current Bar: The price gaps up sharply on good news to open into new high ground. The volume is high, and the bar closes on its low.
What is the professional diagnosis?
- Weak Gap-Up; it is a trap designed to draw in FOMO buyers for distribution.
- A Shake-out; professionals are quickly clearing out the short sellers.
- Bullish Breakout; the gap clearly shows genuine strength and real momentum.
- Absorption Volume; professionals are quietly buying into the fresh new high print.
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