medium · Volume Price Analysis
A stock has risen steadily for ten days. On the eleventh day, it prints a narrow-spread up candle with the highest volume seen in the entire move.
How should a VPA practitioner interpret this?
- Insiders are absorbing buying pressure, indicating the trend is nearing exhaustion.
- A 'no supply' bar confirming that the floor of support has been raised.
- The trend is accelerating as new institutional buyers enter the market.
- A successful test of demand that confirms the markup phase will continue.
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