medium · Volume Price Analysis
A 'Spring' occurs when the price pushes below a support level during the session but closes back above it.
If this happens on high volume, what is the VPA interpretation?
- Insiders have cleared out 'weak' holders and triggered stop-losses to collect inventory.
- This is a bearish 'trap up' move.
- The support level has officially failed and a markdown trend has begun.
- The market is in a neutral standoff and will likely drift sideways indefinitely.
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