hard · Volume Spread Analysis supply-demand-smart-money
An 'End of a Rising Market' signal is characterized by a narrow-spread up-bar into new high ground on high volume.
Why is this specifically bearish if the close is on the high?
- The signal is only bearish if it occurs on a '90-minute reporting delay' bar, which hides the true volume signature.
- The professionals are 'capping' the price by selling into the demand, preventing the spread from widening despite high activity.
- A narrow spread into new highs on high volume is actually bullish because it shows a 'slow and steady' sustainable accumulation.
- A close on the high indicates that demand has been totally exhausted and there are no buyers left for the next session.
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