easy · Volume Spread Analysis effort-vs-result-spread

What does a narrow spread on an up-bar with high volume, closing on the low, suggest about the market-maker's activity?

  1. The market-maker is completely absent here, and the volume is purely retail-driven.
  2. The market-maker is quietly accumulating stock ahead of the breakout.
  3. The market-maker is capping the price by selling into all incoming buy orders.
  4. The market-maker is aggressively marking prices up to find willing sellers.

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