easy · Volume Spread Analysis effort-vs-result-spread
A practitioner sees a wide-spread down-bar on low volume closing on its low. This is identified as 'Falling Pressure'.
What does this imply about the professionals?
- They are accumulating stock on the way down.
- This is a 'failed test' and the market will reverse immediately.
- They have withdrawn their support, and the market is falling under its own weight.
- They are aggressively shorting the market to drive it into a crash.
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