medium · Volume Price Analysis

An institutional 'Test of Demand' occurs at the end of a distribution phase.

If this test is 'successful' from an insider's bearish perspective, what will the volume behavior be?

  1. The volume will be low, indicating no buyers remain to support higher prices.
  2. The volume will be high, showing that buyers are still aggressively fighting the trend.
  3. The volume will be average, validating a steady continuation of the bullish trend.
  4. The volume will be ultra-high, indicating a 'Buying Climax' is taking place.

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