easy · Volume Price Analysis
A stock has been trending higher for two weeks. Between 12:00 PM and 1:30 PM ET, the price oscillates in a tight 0.15 range while volume drops to 25% of the morning average. A wide-spread up candle suddenly appears on 40% of the average volume.
How should a practitioner interpret this move?
- It is a trap up move manufactured by intermediaries during a period of low participation.
- It is a sign of hidden accumulation occurring during a period of professional withdrawal.
- It is a validated breakout signaling the start of the afternoon markup phase.
- It represents a 'No Supply' bar indicating that sellers have been completely absorbed.
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