medium · Volume Price Analysis support-resistance

A market breaks above a resistance level on high volume but the next two candles are 'shooting stars' on even higher volume.

What is the most likely outcome?

  1. The breakout will fail and price will reverse as the move was a selling climax.
  2. This is a successful test of demand and the markup will now accelerate.
  3. The market is entering a congestion phase before a true breakout occurs.
  4. The trend is very strong because volume is increasing session after session.

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