medium · Volume Spread Analysis wyckoff-phases-schematics

A 'Mushroom Top' distribution pattern is unfolding. What is the most likely observation regarding volume and spread as the price begins to 'round over'?

  1. Rallies occur on narrow spreads and low volume, while down-moves show widening spreads and increasing volume.
  2. The market remains extremely quiet with low volume on both up and down bars, indicating a lack of any professional activity.
  3. Price gaps higher repeatedly on low volume to trap late buyers before the decline.
  4. Volume surges to record levels on every up-bar, creating a series of Buying Climaxes.

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