medium · Volume Spread Analysis wyckoff-phases-schematics

An index has been rallying for several weeks and reaches new high ground. You observe a wide-spread up-bar on ultra-high volume, but the price closes in the middle of the bar's range.

What is the most likely professional activity occurring?

  1. Aggressive institutional buying supporting the trend
  2. Absorption of overhead supply from an old trading range
  3. Professional distribution into retail demand
  4. A temporary lack of liquidity leading to spread expansion

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