Market Participation Logic
Participation State Logic Overview:
Confirmed:
The "real deal." Above-average volume, strong relative strength, and good gap follow-through indicate institutions are participating.
Exhausted:
High volume but negative price action. Think "Gap and Crap" or distribution days where huge volume doesn't result in upward progress.
Divergent:
Exposes fake breakouts. Price is trying to move up but relative strength is negative and volume is drying up.
Weak:
Standard low-volume, choppy drift. No strong hands are driving the asset.