medium · Volume Price Analysis
A 'Failed Test of Supply' occurs when price is pushed back into an accumulation zone on high volume.
What does this indicate for the subsequent breakout attempt?
- The breakout is cancelled and the trend will reverse bearish.
- The 'Cause and Effect' balance has shifted to the downside.
- The breakout is delayed as insiders must continue to absorb the residual selling pressure.
- The breakout is imminent because high volume shows interest.
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