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

Which of the following scenarios best describes 'Bag Holding' from a professional's perspective?

  1. A market-maker absorbing large buy orders in order to fill them at the top of a Buying Climax.
  2. The final stage of a Selling Climax where remaining weak-handed supply becomes fully exhausted.
  3. Consistently supporting the lows of a stock during an index decline after having completed accumulation.
  4. Retail traders holding onto a losing position during a Mark-Down phase, hoping the price eventually recovers.

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