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 'herd' from following their buying activity.
- To create panic selling among weak holders, providing the liquidity needed to accumulate a large position at low prices.
- To satisfy legal requirements to reflect the true value of the asset.
- To discourage short sellers from entering the market at the new lows.
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