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

In VSA, why is a narrow spread on an up-day with high volume considered bearish?

  1. It shows that there is no demand from the professional operators.
  2. It means the market-makers are marking prices up against the demand.
  3. It is a sign of professional buying absorbing all available sell orders.
  4. It indicates that supply is entering the market and capping the price rise.

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