hard · Volume Price Analysis
A stock has completed a textbook distribution range and breaks down decisively. It then rallies back up to the lower boundary of that former range on declining volume, stalls, and turns down again.
In Wyckoff phase terms, this back-up most precisely corresponds to which event, and what is its diagnostic significance?
- A Last Point of Supply (LPSY) — the former support, now resistance, is retested on weak demand, confirming the markdown phase has begun
- A secondary test within Phase B of accumulation, indicating the range is still building cause for a future markup
- An Upthrust After Distribution (UTAD), marking the final bull trap at the very top of the prior range
- A Sign of Strength (SOS) back-up, confirming demand has overwhelmed the supply that capped the range
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