medium · Volume Price Analysis support-resistance
A range breaks to the upside with a wide spread on average volume, then the next candle is a shooting star on ultra-high volume. This is a classic 'Upthrust.'
Who is trapped in this scenario?
- Short sellers, who were squeezed and forced to buy back.
- Breakout buyers who entered on the initial move above resistance.
- The insiders themselves, unable to push price any further up.
- Institutional hedgers waiting patiently for a much lower entry price.
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