medium · Volume Price Analysis climactic
A stock in a markup phase produces three consecutive up candles. Candle $1: spread $1.50, volume $2.0M. Candle $2: spread $1.20, volume $2.8M. Candle $3: spread $0.60, volume $3.5M.
What is the specific 'Topping Out' signature here?
- This is essentially a 'Price Waterfall' running in reverse, indicating a parabolic move is now beginning.
- A 'Successful Test of Demand' will most likely follow immediately after these three progressively narrowing candles.
- Price progress is narrowing while volume (effort) is increasing, signaling massive absorption and trend exhaustion.
- The trend is clearly accelerating upward here because volume keeps making fresh new highs alongside every single rising candle.
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