medium · Volume Price Analysis
A stock breaks below a congestion floor on low volume, then immediately produces a high-volume hammer that closes back in the range.
What is the trade plan?
- Enter long; the low-volume break was a trap and the hammer confirms institutional absorption (Spring).
- Wait for a No Demand bar; the market is currently in a state of extreme indecision.
- Exit all positions; the high volume indicates that insiders are distributing.
- Enter short; the break of support is the primary signal and the hammer is just a temporary pullback.
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