medium · Volume Spread Analysis supply-demand-smart-money
During a sharp decline in the parent index, Stock A trades in a tight sideways range. While the index makes lower lows, Stock A's lows are consistently held at $42.50 on high volume that closes in the upper half of the daily bars.
This behavior most accurately represents which professional tactic?
- A selling climax, where the general public is panicking and the market is about to reverse immediately.
- Bag holding, where professionals are forced to support the price to protect their accumulated positions.
- No selling pressure, as the low volatility in the stock shows that the bear move is losing momentum naturally.
- Distribution in a slow market, as the professionals are gradually liquidating their holdings into the index's weakness.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis supply-demand-smart-money practice
- When observing a 15-minute chart of a stock traded in London… — Why might a VSA practition
- Very bad news breaks for a major retail stock. Instead of th… — What is the likely objecti
- Why is the classification of 'Relative Volume' more important than 'Absolute Volume' when
- A 'No Demand' bar is identified by a narrow spread up-bar wi… — Why does this signal often
- The S&P $500 index drops 5% over a week. During this same pe… — What is this 'relative str
- Which of the following describes the behavior of 'Strong Holders'?
- An index has been rising for months. You identify a stock th… — What does this indicate?
- In the context of 'Smoke-Filled Room Syndrome,' why do multiple professional operators oft