medium · Volume Spread Analysis supply-demand-smart-money
Which signal involves 'Bag Holding' and why is it considered bullish?
- It is simply a sign of a Buying Climax where professionals exit; bag holding marks the exact top
- Retail traders hold losing positions, which supplies liquidity that professionals use for a mark-down
- It occurs whenever volume falls so low that the market effectively 'dies quietly' without any support
- Professionals support the price because it is below their average cost; it confirms their commitment
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