medium · Volume Spread Analysis wyckoff-phases-schematics
A stock has been in an accumulation range for weeks. It suddenly gaps down on bad news, but the volume is ultra-high and the bar closes on its high.
What is the most likely professional response to this bad news?
- They are liquidating their positions because the news has changed the stock's fundamental value.
- They are using the news to trigger a shake-out and accumulate cheap shares from weak holders.
- They are withdrawing from the market, leading to a fall under the market's own weight.
- They are marking the price down to probe for remaining demand before a markup.
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