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

A stock is in an accumulation phase. You see a high-volume down-bar that closes well off its low, followed by a low-volume bar that dips into the same area and recovers.

What does the first bar represent?

  1. A 'No Demand' bar signaling that the mark-up phase is ending here.
  2. Selling pressure indicating that this accumulation attempt has now clearly failed.
  3. A 'Mushroom Top' rounding distribution formation is starting to develop at this peak.
  4. Absorption volume where professionals are stepping in to arrest the decline.

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