easy · Volume Price Analysis climactic

A 'Short Squeeze' is identified on a chart. What does this represent in terms of Volume Price Analysis?

1. It marks the start of a durable, long-term markup phase driven by strong fundamental growth and quiet insider accumulation here.
2. It is a low-volume trap-up move carefully engineered to clear out the remaining buyers before a larger distribution phase gets underway.
3. A temporary high-volume mechanical rally caused by forced liquidation of short positions, not necessarily sustained institutional buying.
4. It is a successful test of demand that confirms the insiders have already fully emptied their entire warehouse stockpile onto the open market.

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