medium · Volume Price Analysis
A wide-spread bullish candle closes near its high with volume significantly above the twenty-period average.
According to the Law of Effort versus Result, how should this be interpreted?
- The market is entering a distribution phase due to excessive buying effort.
- This is a trap up move intended to lure late retail buyers.
- The price move is validated because high effort produced a proportional result.
- This signifies a selling climax where insiders are exiting their positions.
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