medium · Volume Price Analysis climactic
A trader observes a 15-minute chart of EUR/USD where a series of three candles at a resistance level show narrowing bullish bodies with progressively higher tick volume.
What does this 'Topping Out' signature suggest?
- The rising volume validates the narrowing spread as a sign of consolidation before a move higher.
- Insiders are absorbing the remaining buying pressure by selling into the retail demand.
- The market is entering a 'No Supply' phase, clearing the way for a major breakout.
- The bullish trend is accelerating as demand reaches its peak intensity.
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