medium · Volume Spread Analysis effort-vs-result-spread
During a Mark-Down phase, why do small rallies often occur on low volume, and what is the VSA term for this?
- This is 'Absorption', where professionals are buying back stock at higher prices to trap shorts.
- These are 'Tests' that show professional buying is starting to enter.
- This is 'No Demand', indicating professionals are not interested in higher prices and the move is hollow.
- This is 'Bag Holding', where the market refuses to fall further despite the lack of volume.
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