medium · Volume Spread Analysis supply-demand-smart-money
A stock in a steady markdown phase attempts to rally. The rally consists of three bars: the first has a wide spread up on high volume, the second is narrow spread up on average volume, and the third is narrow spread up on volume lower than the prior two.
How should this 'Bearish Sequence' be interpreted?
- An 'Absorption' push to clear out the short sellers at the top of the range.
- A healthy 'markup phase' recharge as volume contracts on the move higher.
- Supply Overcoming Demand followed by No Demand, suggesting the rally is a trap.
- A 'Bottom Reversal' sequence that is preparing for a new bull market.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis supply-demand-smart-money practice
- The S&P $500 index drops 5% over a week. During this same pe… — What is this 'relative str
- A 'No Demand' bar is identified by a narrow spread up-bar wi… — Why does this signal often
- Very bad news breaks for a major retail stock. Instead of th… — What is the likely objecti
- When observing a 15-minute chart of a stock traded in London… — Why might a VSA practition
- Why is the classification of 'Relative Volume' more important than 'Absolute Volume' when
- Which of the following describes the behavior of 'Strong Holders'?
- In the context of 'Smoke-Filled Room Syndrome,' why do multiple professional operators oft
- Why are professional probes and 'stop-hunts' most frequently observed during the early mor