hard · Volume Price Analysis climactic
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.
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