medium · Volume Price Analysis
After a breakout above a distribution ceiling, a candle returns to test the level. It is a 'Hanging Man' candle (small body, long lower wick) at the very top of the trend on ultra-high volume.
What is the interpretation?
- Bearish weakness, as it signals the first significant arrival of institutional sellers.
- Bullish strength, since the long lower wick shows clearly rejected lower prices.
- A neutral test of supply that simply confirms the ongoing markup trend will continue.
- Stopping volume, indicating the price is preparing to consolidate before its next big move higher.
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