medium · Volume Price Analysis testing
An 'Upthrust' at resistance is the direct bearish equivalent of a 'Spring' at support.
What is the shared psychological objective of these two maneuvers for the insiders?
- To give ordinary retail traders a fair opportunity to exit their losing positions somewhere near a break-even price.
- To test the underlying strength and long-term durability of the current market trend to ensure it can sustain another full phase.
- To trigger stop-loss orders and attract 'breakout' traders to provide the liquidity needed to fill large institutional orders.
- To deliberately manipulate the opening and closing prices in order to confuse rival automated trading algorithms and their execution systems.
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