medium · Volume Price Analysis testing

If a Spring is followed immediately by a 'No Supply' bar, what does this tell the VPA practitioner about the state of the market?

1. The market is likely entering a fresh markdown phase, since the lack of supply also implies buyers have lost their interest.
2. The Spring was ultimately a failure, since the bar following it lacked the volume needed to sustain and confirm the recovery move higher.
3. The market is ready for an immediate markup because the Spring cleared out the weak hands and the No Supply bar confirmed no sellers remain.
4. A 'No Demand' bar is more likely to follow directly after a Spring occurs, signifying that the insiders have moved on to other instruments entirely.

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