medium · Volume Spread Analysis effort-vs-result-spread
Why does 'True Strength' always appear on down-bars and 'True Weakness' always appear on up-bars?
- Professional buying (strength) is done on down-moves to prevent marking the price up, while professional selling (weakness) is done on up-moves to attract retail buyers.
- The spread of a down-bar is naturally always wider than that of an up-bar, which makes professional participation far easier to visually detect on the price chart.
- Weakness is strictly defined by low volume, which by strict technical definition can only ever occur on up-bars whenever the broader market is already in a confirmed bear trend.
- It is a deliberate psychological tactic used by professionals to ensure the emotionally reactive 'Herd' always trades in the same direction as professional interests want it to.
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