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?

  1. The signal is only bearish if it occurs on a '90-minute reporting delay' bar, which hides the true volume signature.
  2. The professionals are 'capping' the price by selling into the demand, preventing the spread from widening despite high activity.
  3. A narrow spread into new highs on high volume is actually bullish because it shows a 'slow and steady' sustainable accumulation.
  4. 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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