medium · Volume Spread Analysis wyckoff-phases-schematics
A stock is rounding over in a 'mushroom top' pattern. You observe several up-bars with narrow spreads and volume that is lower than the previous two bars.
What does this indicate?
- The market is consolidating before a major breakout to new all-time highs.
- This is absorption volume where the professionals are buying every small rally.
- The market is exhausted of buyers, and professional operators are no longer supporting the rally attempts.
- Sellers have completely left the market, creating a low-volume vacuum that will pull prices higher.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis wyckoff-phases-schematics practice
- A stock gaps up $3.00 on a positive earnings report after a… — How should this scenario be
- During a distribution phase, how do professionals use 'Good News' to facilitate their stra
- In the Accumulation phase, why does volume typically remain low on rallies within the trad
- A stock gaps up from $78 to $81.50 following a positive earn… — How should a practitioner
- In the 'Mushroom Top' distribution pattern, why do prices round over gradually rather than
- Why is the '90-Minute Reporting Delay' on the London Stock Exchange significant for VSA pr
- What is the diagnosis?
- What identifies 'Bag Holding' as a sign of strength on a chart?