medium · Volume Spread Analysis supply-demand-smart-money

A stock is in a mark-down phase. It rallies for three days on narrow spreads and volume that is lower than the previous two bars each day. On the fourth day, an up-thrust appears. This sequence is a classic example of:

  1. Professional support being provided to prevent a collapse.
  2. No demand followed by a trap to catch late bottom-fishers.
  3. Re-accumulation followed by a successful breakout test.
  4. A selling climax followed by a 'secondary distribution' phase.

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