hard · Volume Price Analysis
A stock is falling in a price waterfall. A candle forms with a spread of $3.50 (wider than average) but the lower wick is equal to the body length ($3.50). Volume is 3.0× the average.
What is the 'effort vs. result' analysis of this candle?
- Anomaly; the high volume produced a large wick, indicating buyers are beginning to absorb the selling.
- Neutral; the equal body and wick on high volume simply represent indecision, forming a classic Doji.
- Validated selling; the wide spread and high volume together confirm a continuing bearish trend.
- Bearish anomaly; the insiders are marking the price lower here to trap unsuspecting retail sellers.
Sign up free to see the explanation and track your rank →
More Volume Price Analysis practice
- A stock has been in a sustained uptrend for three weeks. A c… — How should this be interpr
- What is the specific VPA principle demonstrated here?
- During an accumulation phase, the price dips below the estab… — What is the correct Wyckof
- What is the most likely price behavior?
- What is the next step in the decision framework to confirm this is an entry opportunity?
- An up candle with a very narrow spread and very low volume a… — What does this specificall
- A practitioner is using a 233-tick chart for the ES E-mini.… — What does a 'low volume' ba
- A stock has reached the top of a distribution zone. A candle… — How should the practitione