medium · Volume Price Analysis climactic

A trader observes a candle with a small body and a long lower wick at the peak of a two-month bullish markup. Volume is exceptionally high.

What does the lower wick primarily represent in this specific context?

  1. The final exhaustion of all remaining bears in the market.
  2. The first appearance of significant selling pressure in the uptrend.
  3. A successful, low-volume test of remaining supply conducted by the insiders themselves.
  4. Strong, unidirectional sentiment from institutional buyers pushing price higher.

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