medium · Volume Price Analysis
According to the Law of Effort vs. Result, what is the most likely interpretation of a narrow-spread up candle accompanied by ultra-high volume?
- Market makers are withdrawing their liquidity to test higher prices.
- This is a 'trap up' move designed to shake out short sellers before a massive rally.
- The trend is strong and validated, as high volume always confirms the direction of the candle.
- The market is absorbing volume and institutional sellers are likely overwhelming buyers.
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