hard · Volume Price Analysis
An 'Upthrust' at a resistance ceiling produces a long upper wick on volume that is significantly below the average.
How does the VPA practitioner interpret this?
- It is a powerful 'Selling Climax' indicating that the insiders are dumping inventory.
- It is a successful test of demand, confirming that buyers have withdrawn and the path lower is clear.
- The low volume indicates that the resistance is weak and will be broken on the next attempt.
- It is a 'Spring' in reverse, designed to shake out weak long positions.
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