medium · Volume Price Analysis
A 'Long-Legged Doji' appears on a tick chart immediately following a major central bank interest rate announcement. The tick volume is significantly below the average.
How should this be interpreted?
- As a validated reversal signal because the news has been fully 'digested' by the market.
- As a genuine standoff between major institutional buyers and sellers reflecting true indecision.
- As a sign of extreme market liquidity where orders are being filled with no slippage.
- As a trap move where insiders are 'stop-hunting' using volatility without committing capital.
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