medium · Volume Price Analysis

If a wide-spread down candle closes at 45.20 after opening at 48.50, and the volume is the highest seen in fifty bars, why is the absence of a lower wick significant?

1. It signals an impending 'trap down' move by market makers.
2. It indicates that the selling pressure remained uncontested through the close.
3. It suggests that buyers are already accumulating at lower prices.
4. It proves the market is in an oversold state and must reverse.

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