medium · Volume Spread Analysis background-trend-context
A stock is in a confirmed mark-up phase. You identify: Bar 1: Wide spread up, average volume, close on high. Bar 2: Average spread down, volume lower than Bar 1, close in the middle. Bar 3: Narrow spread down, volume lower than both Bar 1 and Bar 2, close on the high.
What is the professional signal identified in Bar 3?
- This is an 'Up-thrust' trap, carefully engineered to fool eager, unsuspecting retail traders into going long near the very top.
- This is 'No Demand,' which clearly signifies that the entire mark-up phase has now come to its definite end.
- This is 'No Selling Pressure,' confirming that professionals are not liquidating their positions on the reaction.
- This is 'Absorption Volume,' where professionals are quietly buying up all of the available dips.
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