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

A stock is at the end of a long-term bull market. A 'no-demand' bar appears, followed by a bar that is a narrow-spread up-bar on ultra-high volume closing in the middle.

What is the narrative of professional activity here?

  1. The narrative is bullish because both bars show a total lack of any significant selling pressure.
  2. The 'no-demand' bar was a mistake, and the high volume bar shows the markup is resuming with even more force.
  3. Professionals initially withdrew (no demand), then returned to aggressively cap the final retail buying frenzy (supply entering).
  4. Professionals are 're-accumulating' because the ultra-high volume proves they are buying all the shares available.

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