hard · Volume Price Analysis
A stock has risen for eight consecutive days, but the volume bars have steadily declined each day. On the ninth day, a shooting star forms on high volume.
What does this progression reveal?
- Volume-Price divergence has signaled exhaustion, and the shooting star confirms institutional distribution.
- The trend is healthy because price continues to rise while sellers are clearly absent.
- The shooting star is a 'trap down' designed to shake out weak longs before a further rise.
- The market is entering a markup phase from a very tight accumulation base.
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