medium · Volume Spread Analysis background-trend-context
A bar opens with a gap up into new high ground after a long rally. The news is very positive. The bar has a narrow spread, closes in the lower third, and the volume is ultra-high.
What is the professional diagnosis?
- Absorption of overhead resistance; the professionals are buying everything to move higher.
- Supply is swamping demand; the professionals are using the good news to distribute into retail buying.
- The market is overbought but will consolidate before another leg up.
- A strong gap-up confirming the continuation of the bull market.
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