hard · Volume Price Analysis Climactic Price Action & Reversal Dynamics
A stock has rallied for six weeks. In the final week, a wide-spread up candle closes at its high on the largest volume of the entire move. Two sessions later, price pushes to a marginal new high on volume roughly a quarter of that climax candle's total, closing with a long upper wick well below the new high.
What does the sharply diminished volume behind the marginal new high most likely reveal about the earlier wide-spread candle?
- It confirms the earlier candle was ordinary accumulation still building a Cause for markup ahead.
- It shows the earlier candle already absorbed the bulk of available demand, leaving little left.
- It proves the marginal new high is a fresh breakaway gap validating the rally's continuation.
- It is irrelevant, since only the most recent candle's volume ever carries analytical weight.
Sign up free to see the explanation and track your rank →
More Volume Price Analysis Climactic Price Action & Reversal Dynamics practice
- Which stock more likely marks a genuine low, and why?
- Why is Candle A the stronger candidate for a genuine Buying Climax bottom compared to Cand
- An index has been trending down for months. Volume on down c… — What does this three-week
- What does the second wide-spread down candle most likely reveal about the first?
- Near the top of a rally, a stock prints a wide-spread up can… — What does this second cand
- A stock gaps up sharply at the open after a long advance, tr… — Why does a flat close on r