hard · Volume Spread Analysis
Why is 'Falling Pressure' considered a sign that a decline may be losing momentum, even though the bar closes on its low with a wide spread?
- The wide spread shows that the market is oversold and a 'V-shaped' recovery is mathematically inevitable.
- The close on the low is a 'trap' designed to lure in long buyers who see the low volume as a sign of safety.
- The low volume indicates that professionals are no longer driving the price down and have withdrawn their selling interest.
- It indicates a 'Spring' is about to occur, as professionals always withdraw volume before marking prices up.
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