medium · Volume Spread Analysis wyckoff-phases-schematics

In the 'Mushroom Top' distribution pattern, why do prices round over gradually rather than collapsing immediately?

  1. Short sellers are gradually covering their positions, which props up the price.
  2. The news is so good that professional selling cannot overcome retail demand all at once.
  3. The market is waiting for a specific economic report to confirm the trend reversal.
  4. Market-makers sell on each rally and support each dip to distribute as much as possible.

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