medium · Volume Spread Analysis effort-vs-result-spread
A stock is in a Mark-Up phase. You see a low-volume down-bar closing on its high (CP = 90%) that dips below the previous bar's low.
What is the classification and trade implication?
- Selling Pressure; it shows professionals are actively and aggressively driving the price sharply lower.
- End of a Rising Market; treat it as a signal to exit every long position immediately.
- No Demand; buyers have run out of steam here and a reversal is coming.
- Test in a Rising Market; it is a high-probability re-entry or add-to-position point.
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