medium · Volume Price Analysis
A price breaks a resistance ceiling on high volume but immediately forms a shooting star on even higher volume.
What is the most likely institutional interpretation?
- This confirms the 'Law of Supply and Demand' as demand is clearly overcoming supply.
- The insiders are 'shaking out' the short sellers before continuing the trend higher.
- The initial breakout was a 'trap up' designed to generate buy-side liquidity for distribution.
- This is a 'markup' phase that is just encountering some temporary profit-taking.
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