medium · Volume Price Analysis
An Upthrust occurs when a candle penetrates resistance but closes back inside the range.
If this occurs on high volume, what is the 'Self-Contained' explanation for the bearish implication?
- The lack of buyers above the range simply indicates that the 'markup' phase has now ended.
- It is a genuinely successful test of supply that clears the way for meaningfully lower prices ahead.
- Insiders sold into the demand created by triggered buy-stop orders and retail breakout buyers.
- The narrow candle body suggests the market has quietly entered a 'No Supply' phase instead of reversing.
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