medium · Volume Price Analysis support-resistance
An 'Upthrust' at a resistance ceiling produces a long upper wick on volume that is significantly below the average.
How does the VPA practitioner interpret this?
- It is a powerful 'Selling Climax' showing that the insiders are dumping their inventory.
- It is a successful test of demand, confirming that buyers have withdrawn and the path lower is clear.
- The low volume indicates that the resistance level is weak and will be broken on the next attempt.
- It is a 'Spring' pattern in reverse, designed to shake out weak long positions before the price reverses lower.
Sign up free to see the explanation and track your rank →
More Volume Price Analysis support-resistance practice
- During an accumulation phase, the price dips below the estab… — What is the correct Wyckof
- What is the immediate trade implication?
- Following an accumulation phase, the market pushes below the… — What is this schematic eve
- A Volume at Price (VAP) histogram shows a large 'High Volume… — As the price approaches th
- What is the most likely outcome?
- If the price is at $158.00 and forms a shooting star on low volume, what is the expected o
- During a sideways consolidation, the price dips below the es… — What is the correct VPA te
- What is the Wyckoffian term for the first candle?