medium · Volume Price Analysis
During a major economic news release, a 5-minute candle forms a long-legged doji with extremely high volume.
What does the volume tell you about the insiders' activity?
- The market is genuinely digesting the news with intense institutional participation
- The move is likely a manufactured stop-hunt trap engineered by insiders and best ignored
- A decisive trend reversal is now virtually guaranteed on the next candle
- Insiders are simply stop-hunting retail traders' resting stops placed just below recent lows
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