easy · Volume Price Analysis climactic
How does a 'Spring' formation at a support level function as a trap for retail traders?
- It pushes above resistance to trigger buy-stops, letting insiders quietly exit their accumulated long positions.
- It is a deliberately engineered low-volume move that confirms the support breakdown will continue rapidly into new lows.
- It pushes below support to trigger sell-stop orders and shake out weak holders before insiders buy and reverse the price.
- It signals that insiders have fully withdrawn from the market, leaving retail price action to drift aimlessly without direction.
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