medium · Volume Price Analysis testing
A trader identifies a narrow-spread up candle that closed near its high, but it is accompanied by ultra-high volume. This candle appears after a sustained markup.
How should this be interpreted?
- A successful test of demand indicating that no buyers are left in the market.
- A bearish anomaly suggesting that insiders are absorbing the buying pressure at this level.
- A 'no demand' bar signaling that the insiders have completely withdrawn from the market.
- A bullish validation confirming that demand is extremely high and the trend will accelerate.
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