medium · Volume Price Analysis testing
Following a distribution phase, the insiders push the price back up into the resistance zone. The candle has a narrow body, a deep upper wick, and volume is 0.5x the average.
What is the trade implication?
- The test failed; wait for more distribution
- The test of demand was successful; enter short
- Bullish validation; insiders are loading long positions
- Enter long on the breakout of the upper wick
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