medium · Volume Price Analysis testing
Scenario: A gold miner's stock has been sideways for 2 months. It dips into support on volume that is the highest of the month. The candle is a hammer. Diagnosis?
- Failed test; lingering supply must be absorbed
- Markup phase has clearly begun in earnest
- Successful test; the stock is now clear for takeoff
- No demand bar signals the trend is ending
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