medium · Volume Price Analysis
A trader sees a breakout candle above resistance with a wide spread and high volume. Two candles later, an Upthrust appears on even higher volume.
What is the most likely scenario for the initial breakout?
- The market is experiencing high volatility but remains in a bullish markup phase.
- The initial breakout was the start of a strong trend and the Upthrust is just a minor pullback.
- The initial breakout was a 'trap up' designed to bring in momentum buyers before the insiders fully distributed.
- The insiders are 'testing the breakout' to ensure no sellers remain in the market.
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