hard · Volume Price Analysis
An Upthrust appears at the top of a trading range. It penetrates resistance by $20 cents and closes back below the level on volume $2.5x the average.
What are the two psychological groups trapped by this move?
- Breakout buyers who entered on the spike and short-sellers whose stop-loss orders were triggered.
- Institutional sellers who were forced to buy back and retail buyers who sold at the bottom.
- Vindicated traders who held from the bottom and late sellers who entered at the top.
- Traders who missed the move and are now waiting for a pullback to enter.
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