medium · Volume Spread Analysis background-trend-context
At the peak of a long rally, you observe an up-bar with a very narrow spread on ultra-high volume that closes in the middle of its range.
What is this price action foreshadowing?
- The rally will accelerate because high volume confirms strong buying interest.
- The market is likely to stall or decline as professional supply enters.
- A brief pause before a much stronger breakout to new highs.
- Professional traders are aggressively buying the dip within the bar.
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