medium · Volume Spread Analysis climaxes-tests-springs-upthrusts
During the mark-down phase, how do 'no demand' rallies trap weak holders who are 'locked-in'?
- The rally gives them false hope that a recovery has begun, preventing them from selling.
- The low volume rallies quietly force weak holders to keep buying stock to average down their cost.
- The rally triggers a fresh burst of short-covering buy orders at the worst price.
- The rally causes market-makers to mark prices up sharply against them.
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