medium · Volume Spread Analysis effort-vs-result-spread
Why is 'falling pressure' (a wide-spread down-bar on low volume) considered a sign of potential strength rather than weakness?
- Low volume on a down-day always triggers a mandatory buy signal.
- It indicates that the market-maker is generous and providing good prices to buyers.
- The wide spread shows high conviction among professional bear traders.
- It shows that professional sellers are not actively driving the price lower.
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