medium · Volume Spread Analysis climaxes-tests-springs-upthrusts
A market-maker is bearish and expects lower prices, but the retail crowd is currently buying into a minor rally.
How will the market-maker likely structure the spread and price discovery during this session?
- By marking prices up sharply on a wide spread to discourage further retail buying
- By keeping the day's spread wide while volume stays low, simulating professional absence
- By providing a narrow spread on the up-day to 'generously' fill buy orders at attractive prices.
- By gapping the market down hard at the open to trigger immediate panic selling among all retail holders
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