hard · Volume Spread Analysis
Why is 'Ultra-High Volume' on an up-bar often a warning of weakness rather than a sign of strength?
- It signifies that the 'strong holders' have run out of money and can no longer support the price.
- Ultra-high volume indicates that retail traders are all buying at once, which always precedes a crash.
- It indicates that supply is entering the market in large enough quantities to be potentially absorbed by professionals as distribution.
- It means the market is 'overbought' and must mathematically revert to its simple moving average.
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