hard · Volume Spread Analysis wyckoff-phases-schematics
A practitioner sees a high-volume up-bar with a narrow spread near an old market top from six months ago. The price closes on the high.
Is this always a sign of weakness?
- No, because the close occurring right on the high confirms that essentially no sellers remain present anywhere in the market.
- Yes, high volume occurring on a narrow spread bar always means that active professional selling is currently taking place there.
- Yes, because professionals never buy shares back at old resistance levels once that ceiling is finally broken.
- No, it could be 'Absorption Volume' where professionals are buying shares from traders who were 'locked-in' at the old top.
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