easy · Volume Price Analysis support-resistance
A stock breaks out above a 4-week consolidation ceiling at 55.00 with a wide-spread up candle that closes at 56.20.
If the volume on this breakout candle is 2.5× the 20-day average, how should a practitioner interpret this move?
- The move represents a 'No Demand' scenario despite the price increase.
- The move is a validated bullish breakout supported by institutional participation.
- The move indicates that supply has completely overwhelmed demand at the 55.00 level.
- The move is a 'trap up' designed to lure retail buyers before a reversal.
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