medium · Volume Spread Analysis supply-demand-smart-money
A stock is rising. You observe three consecutive bars: (1) Wide-spread up on high volume closing high; (2) Narrower spread up on ultra-high volume closing mid; (3) Narrow spread up on very low volume closing low.
What is the narrative?
- A healthy mark-up that is entering a 're-accumulation' phase to absorb profit-taking.
- A 'Buying Climax' that has been successfully 'tested' and is now ready for a breakout.
- Professional operators are 'marking up' on low volume to encourage the public to buy more.
- Strength (Effort) followed by Supply Entering (Effort with no Result) followed by No Demand (Professional withdrawal).
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