hard · Volume Price Analysis
A trader identifies a narrow-spread up candle at a recent peak with ultra-high volume.
Applying the Law of Effort vs. Result, what is the most logical conclusion regarding the 'Composite Operator'?
- Insiders are distributing inventory and absorbing all buy orders at this price ceiling.
- The market is in a neutral state as buyers and sellers are perfectly balanced on low interest.
- This is a successful test of demand indicating that no more buyers exist.
- Insiders are aggressively buying into the move to prepare for a breakout above resistance.
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