If we have a low volume high range day, is this an indication of a complete absence of strong handed sellers (institutions, major players,) and presence of only weak hands such as day traders and mums and dads willing to sell?
To me this could mean one of three things.
(1) either all the major players are already out, so there is no major selling left, which could be a really good thing.
(2) There is no interest from major players so breakout may be limited.
(3) All the major players are in, and no way do they want to sell, so its up to the mums and dads to get on board to drive the prices higher with no major party wanting to sell.
So then how do we identify these scenarios?
i believe there are volume indications leading up to these points which can tell us what the scenario is.
Please shares your views, especially you tech