medium · Volume Spread Analysis climaxes-tests-springs-upthrusts
What is the professional operator's logic for marking prices down sharply on 'bad news' at the bottom of a bear market?
- To prevent the retail 'herd' from noticing and copying their quiet accumulation buying campaign under way.
- To create panic selling among weak holders, providing the liquidity needed to accumulate a large position at low prices.
- To satisfy regulatory disclosure requirements mandating that the asset's true underlying value be reflected promptly in price.
- To discourage momentum-driven short sellers from aggressively piling into the market right at the freshly-formed new swing lows.
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