Definition
No Supply is a narrow-spread down bar with volume below the prior two bars, often closing away from its low. In a background of strength, it indicates that selling pressure has dried up.
Market psychology
A decline attracts little professional selling. If demand then appears, the absence of supply can support markup.
Recognition rules
- The bar closes below the prior close
- Spread is narrow and the close is off the low
- Volume is below both prior bars
- Strength is present in the background
Common mistakes
- Buying low volume in a strongly weak background
- Ignoring the need for bullish confirmation
Teaching example
Loading OHLCV chart…
Read a text alternative
The probe finds little supply. The following up bars are essential: without their response, the low-volume bar would remain only a potential test.
- Market phase
- Accumulation
- Pattern
- Test
- Timeframe
- H1
Where is No Supply most meaningful?
Low supply matters when earlier evidence suggests demand can take control.