hard · Volume Price Analysis

How should a practitioner interpret a series of three wide-spread up candles in an uptrend where volume is consecutively $1M, $1.5M, and $2.1M?

1. Absorption of buyers; the market is struggling to move higher despite the effort.
2. Volume-Price Divergence; the trend is becoming overextended and will likely reverse.
3. A healthy, validated trend; rising volume with rising price (and consistent spreads) confirms institutional participation.
4. An imminent Selling Climax; the rising volume indicates that insiders are dumping their positions.

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