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 with a wide spread to discourage retail buying.
- By keeping the spread wide while volume remains low to simulate professional absence.
- By providing a narrow spread on the up-day to 'generously' fill buy orders at attractive prices.
- By gapping the market down at the open to trigger panic selling immediately.
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