hard · Volume Spread Analysis
A practitioner identifies 'Absorption Volume' in a stock. Which subsequent bar behavior would be required to confirm that the professional buying was genuine?
- A series of high-volume up-bars with narrow spreads to confirm 'No Demand' is left in the market.
- A subsequent 'Test' on low volume that closes in the upper portion of the bar, confirming supply has been removed.
- An immediate 'Buying Climax' to prove that the public has joined the professional move.
- A 'Gap-Up' on ultra-high volume and narrow spread into new highs.
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