medium · Volume Price Analysis

A trader identifies a 'Spring' at a support level. What action are the insiders performing in this scenario?

  1. Executing a short squeeze to force other insiders to exit the market.
  2. Testing the Value Area High (VAH) to confirm a breakout is genuine.
  3. Pushing price below support to trigger sell-stops and shake out weak holders before buying.
  4. Absorbing buying pressure at resistance to prepare for a markdown.

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