medium · Volume Spread Analysis background-trend-context
A practitioner identifies 'No Demand' at a potential market top.
Why is it recommended to wait for a down-bar to confirm the signal before entering a short position?
- To ensure that the 'Negative Response' principle applies and professionals have truly withdrawn.
- To wait for a gap down move, which would secure the best possible short entry price available
- Because 'No Demand' is only considered a valid signal when volume is the lowest reading in twenty bars
- To allow sufficient time for a full 'Buying Climax' pattern to develop and completely play itself out first
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