medium · Volume Price Analysis testing
A futures contract experiences a sharp price spike above a 2-day resistance zone immediately following a central bank announcement. The volume is low compared to the average session open. Within 5 minutes, the price returns to the starting point.
What is this phenomenon?
- The beginning of a genuine buying climax that will lead directly to a new all-time high.
- A structural arbitrage move between the futures market and the underlying cash market pricing.
- An insider stop-hunt designed to clear overhead orders without institutional participation in the move.
- A classic 'no-supply' bar indicating that the prevailing bearish trend has already been fully absorbed by buyers.
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