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.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis background-trend-context practice
- Why is the 'Background' (previous activity) considered the most important factor when read
- A stock chart shows a 'low-volume test' at $38.50. The pract… — By shorting at this point
- A practitioner sees an 'up-thrust' (wide spread up, close on… — What does this 'negative r
- Suppose a stock is approaching a known resistance level. It… — How should a practitioner v
- After a period of distribution, the market attempts to rally… — What does this indicate?
- During a distribution phase, an up-thrust appears at the top… — How does this volume confi
- Does the current high-volume down-bar still represent a professional Shakeout?
- In the context of 'relative strength,' why would a stock that refuses to fall while the pa