medium · Volume Spread Analysis effort-vs-result-spread
When observing a bullish two-bar reversal after a prolonged decline, what is the significance of the second bar's close relative to the first bar's high?
- It indicates a temporary short-covering rally
- It shows that the market is overextended and will likely resume the decline
- It suggests the market-makers are marking up on low volume
- It confirms that professional buying has overcome the prior supply
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