medium · Volume Spread Analysis supply-demand-smart-money
A price bar in a declining market exhibits a wide spread down on ultra-high volume, but the price closes on the high.
What does this specific combination suggest about professional activity?
- Professional money is aggressively buying to absorb the selling pressure.
- Short sellers are aggressively adding to their positions at lower prices.
- The market is experiencing a lack of demand, leading to a natural halt.
- The market is undergoing distribution at new low levels.
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