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- Buyers have withdrawn, and the market is falling under its own weight.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