easy · Volume Price Analysis

In the 'Wholesaler Analogy' of market microstructure, what is the primary objective of the insiders during the accumulation phase?

1. To mark up the price as quickly as possible to trigger FOMO among retail participants.
2. To provide continuous liquidity to satisfy the regulatory requirements of the exchange.
3. To acquire inventory at wholesale prices without significantly driving the price higher.
4. To test the demand ceiling to ensure that there are enough buyers to sustain a long-term trend.

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