medium · Volume Spread Analysis supply-demand-smart-money
A practitioner identifies a 'no-demand' bar during a rally. However, the immediate background shows a 'shake-out' on high volume and two successful 'tests' on low volume.
How does this background score influence the interpretation of the 'no-demand' signal?
- The 'no-demand' bar is likely a temporary pause or a 'lull' in a strong market rather than a reversal signal.
- The 'no-demand' bar is a trap designed to trick practitioners into selling their long positions before the final markup.
- The 'no-demand' bar overrides the previous strength signals, indicating that the 'shake-out' was actually a 'buying climax'.
- The signal confirms that the professionals have finished their markup and are now looking to distribute.
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