medium · Volume Price Analysis
Following a distribution phase, the insiders push the price back up into the resistance zone. The candle has a narrow body, a deep upper wick, and volume is 0.5x the average.
What is the trade implication?
- The test failed; wait for more distribution
- The test of demand was successful; enter short
- Bullish validation; insiders are loading long positions
- Enter long on the breakout of the upper wick
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