hard · Volume Spread Analysis
An equity index has been in a sustained downtrend for several weeks. At a major historical support level, you observe four consecutive bars with ultra-high volume. Bars 1 and 3 are wide-spread down-bars closing in the middle; Bars 2 and 4 are wide-spread up-bars closing near their highs. The index net price change over these four days is nearly zero.
What is the most likely professional activity occurring here?
- Selling Climax
- Mark-Down Phase Continuation
- No Demand and No Supply Equilibrium
- Market Rotation and Churning
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