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

When analyzing 'Demand Overcoming Supply' at a bottom, what is the significance of the close position being off the lows on a down-bar?

1. It shows that the market is too thin to sustain a further move down.
2. It confirms that a buying climax has just occurred.
3. It reveals that professional buying is beginning to exceed the selling pressure.
4. It indicates that short-sellers are covering their positions to take profits.

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