hard · Volume Spread Analysis wyckoff-phases-schematics
An equity has been rallying for several weeks. It produces a narrow-spread up-bar on volume that is 2.8 times the 20-day average, closing on the high. There is no old resistance to the left.
What does this 'End of a Rising Market' signal imply?
- This is a 'No Demand' bar, indicating that the move is hollow and likely to reverse.
- The market is absorbing supply from locked-in traders, preparing for a further leg up.
- The high volume on an up-bar confirms that the path of least resistance is firmly upward.
- Professionals are capping the price by selling into the demand, preventing a wider spread.
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