medium · Volume Price Analysis

An 'Upthrust' is defined as a candle that pushes above resistance but closes back below it.

What is the diagnosis if this occurs on high volume?

  1. It represents 'Stopping Volume' at the ceiling of a distribution zone.
  2. It validates the strength of the resistance and signals a quiet sideways market.
  3. It is a successful test of demand that confirms the path higher is clear.
  4. It is a bearish trap where insiders sold to triggered buy-stop orders.

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