easy · 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 on the high confirms that no sellers are present.
- Yes, high volume on a narrow spread always means professional selling.
- Yes, because professionals never buy at old resistance levels.
- 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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