medium · Volume Price Analysis testing
A trader identifies a 'Double Top' on a chart. The first peak at $85.00 had volume of $4.5M. The second peak reaches $84.80 on volume of $1.8M.
What is the specific VPA signal here?
- A 'Spring' event, indicating that a breakout to the upside is imminent.
- A 'Short Squeeze', as the lower volume suggests shorts are holding their positions.
- A failure of demand at the previous resistance, confirming a lack of buying conviction.
- An 'Absorption' anomaly, suggesting the insiders are buying all the selling pressure.
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