medium · Volume Price Analysis support-resistance

An Upthrust occurs when a candle penetrates resistance but closes back inside the range.

If this occurs on high volume, what is the 'Self-Contained' explanation for the bearish implication?

  1. The lack of buyers above the range simply indicates that the 'markup' phase has now ended.
  2. It is a genuinely successful test of supply that clears the way for meaningfully lower prices ahead.
  3. Insiders sold into the demand created by triggered buy-stop orders and retail breakout buyers.
  4. The narrow candle body suggests the market has quietly entered a 'No Supply' phase instead of reversing.

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