medium · Volume Price Analysis support-resistance
A stock breaks out above a resistance ceiling at $62.00. Two days later, a candle dips back to $61.80 but closes at $62.15. Volume is 35% of the average.
What does this indicate?
- The breakout has failed and a 'trap up' is in progress.
- The insiders are selling to retail traders at a premium.
- A 'Price Waterfall' is imminent as demand has evaporated.
- The old resistance has successfully flipped to new support.
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?