Definition
No Demand is a narrow-spread up bar whose volume is lower than each of the preceding two bars. It shows that professional demand is not supporting the rise, especially after weakness or within an aging up move.
Market psychology
Price rises because little selling is present, not because committed professional buying has arrived. Subsequent weakness is needed to confirm the warning.
Recognition rules
- The bar closes above the prior close
- Its spread is narrow relative to recent bars
- Volume is lower than the prior two bars
- Background contains weakness or an overextended rise
Common mistakes
- Treating low volume alone as bearish
- Selling immediately without confirmation
Teaching example
Loading OHLCV chart…
Read a text alternative
The rally is not supported by professional demand. Low volume matters because the spread is narrow, the bar is up, and prior weakness is already present.
- Market phase
- Distribution
- Pattern
- No Demand
- Timeframe
- H1
Which volume comparison defines No Demand?
The classic test is volume below both of the previous two bars.