medium · Volume Spread Analysis effort-vs-result-spread
At a potential market top, why is a 'no-demand' bar at a known resistance level considered more significant than one appearing in the middle of a range?
- The lack of demand at a level where selling is expected confirms professionals are not interested in pushing through the supply.
- Professional money often uses resistance levels to mask its real buying activity through dark pools and hidden orders.
- Resistance levels always naturally attract higher volume by default, so any low-volume reading there is considered fully irrelevant.
- Herd instinct is completely absent at key resistance levels, which is exactly why professionals exploit these zones to trap unwary traders.
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