medium · Volume Price Analysis climactic
A practitioner sees two shooting stars at the same price level on a daily chart, both with volume 2.5 times the average.
What is the trade implication?
- Wait for a 'Hammer' to confirm that the selling pressure has been fully absorbed.
- Enter long because the volume validates the 'Markup' phase intensity.
- Prepare for a breakout as the market is testing resistance before moving higher.
- High conviction for a reversal as insiders are aggressively distributing inventory.
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