medium · Volume Price Analysis
Following a month of sideways accumulation, a commodity price dips back into the lower half of the range. The resulting candle has a small body and a long lower wick, but the volume is exceptionally low.
What does this 'test' signal to the insiders?
- The market is entering a 'Markdown' phase due to the lack of demand.
- The test is successful; supply has been absorbed and the markup can begin.
- A 'Spring' is occurring, indicating a final shakeout of weak holders.
- The test failed; more accumulation is needed as sellers are still present.
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