medium · Volume Price Analysis
A trader identifies a 'Hanging Man' candle on a Daily chart of a stock. However, the volume on this candle is significantly below the 20-day average.
What is the correct VPA interpretation?
- This is a confirmed Selling Climax bar despite the low volume reading observed.
- This is simply a No Supply bar signaling an imminent continuation of the current uptrend.
- This is a weak signal; the low volume indicates the 'rejection' is not supported by insiders.
- The low volume actually makes this an Upthrust, a considerably stronger bearish reversal signal.
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