medium · Volume Spread Analysis effort-vs-result-spread
In a markdown phase, you see a wide-spread down-bar on low volume that closes on its low. This is often followed by a recovery attempt.
Why is this structurally different from a shakeout?
- Low volume on a down-bar always indicates professional buying is about to start.
- A shakeout cannot happen if the spread is too wide.
- The close on the low indicates the professionals are aggressively shorting.
- This represents 'falling pressure' where the market drops due to a lack of professional support.
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