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

A stock rallies on increasing volume, but on the fourth day, the spread narrows significantly while the volume reaches a new high. The price closes in the middle.

What does this 'End of a Rising Market' signal suggest?

  1. The market is in a healthy absorption phase for a breakout.
  2. Professional buyers are aggressively pushing the price higher.
  3. Supply is entering the market and capping the price movement.
  4. Buyers have withdrawn, and the market is falling under its own weight.

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