hard · Volume Spread Analysis
A trader observes a 'Mushroom Top' distribution pattern. What is the characteristic volume/price behavior of this pattern compared to a 'Buying Climax'?
- A Mushroom Top is always followed by a 'V-Shaped' recovery.
- The pattern is only visible on intraday 1-minute charts and cannot be seen on daily charts.
- It is characterized by ultra-wide spreads and the highest volume seen in months.
- It involves a gradual rounding-over with subtle No Demand bars rather than dramatic volume spikes.
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