hard · Volume Price Analysis
An Upthrust occurs at the top of a distribution range. The candle pushes through resistance, then closes back inside with a long upper wick and volume that is four times the daily average.
What does the high volume signify in this scenario?
- The move is a 'trap down' move that will eventually recover as buyers regain control.
- The high volume validates the rejection and proves that supply has finally exceeded demand.
- Insiders have triggered buy-stops and used that demand to dump their remaining long inventory.
- Insiders are stop-hunting on low participation to clear the way for a genuine breakout higher.
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