medium · Volume Price Analysis
A trader monitors the S&P 500 E-mini futures (ES) and sees three candles. Candle 1 is average. Candle 2 shows rising volume and a wider bullish spread. Candle 3 has the highest volume of the day but a bearish spread of only 1.5 points.
What is the most likely institutional action on Candle 3?
- Insiders are selling into the rally, absorbing the buyers' effort to create a distribution top.
- The market is resting in a 'No Supply' state before the next leg higher.
- Institutional traders are adding to long positions, creating a 'power bar' for continuation.
- Market makers are clearing out stop-loss orders before continuing the markup.
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