hard · Volume Spread Analysis supply-demand-smart-money
A stock has been in a sustained mark-up for two months. It reaches new highs on a bar with a narrow spread, ultra-high volume, and a close in the upper third of the range.
What is the most likely professional intent behind this specific bar?
- This is a sign of extreme strength as buyers overwhelm the sellers.
- This represents a 'trap up-move' designed to catch short sellers' stops.
- The professionals are absorbing remaining supply to continue the mark-up.
- The market-makers are capping the price by selling into the demand.
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