hard · Volume Spread Analysis wyckoff-phases-schematics
Why is 'Ultra-High Volume' on an up-bar often a warning of weakness rather than a sign of strength?
- It signifies that the 'strong holders' behind the market have exhausted their available capital and can no longer support the rising price.
- Ultra-high volume indicates that retail traders are all rushing to buy at once in a frenzy, a pattern that VSA claims always precedes a crash.
- It indicates that supply is entering the market in large enough quantities to be potentially absorbed by professionals as distribution.
- It means the market has become technically 'overbought' and must therefore mathematically revert back to its simple moving average.
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