medium · Volume Price Analysis support-resistance
A stock breaks above a ceiling on volume that is 2.5× average. The next candle is a 'Shooting Star' that closes back inside the range on 3.0× average volume.
How should a practitioner classify this event?
- A validated markup bar followed by nothing more than a minor, unremarkable profit-taking pullback lower still.
- An 'Upthrust' or 'Bull Trap', where insiders triggered buy-stops above resistance and immediately sold into that demand.
- A classic no-supply bar confirming the uptrend will resume its steady climb after just one more quiet consolidation session.
- A successful, textbook low-volume test of demand right at the breakout level, and thus a clear signal to aggressively buy the dip.
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?