hard · Volume Price Analysis testing
A market maker marks prices higher following a period of congestion. The candle is a wide-spread up bar with volume only 25% of the recent average. As the price touches a prior pivot high, a second candle forms with a deep upper wick and volume at 220% of the average.
Which of the following describes the sequence?
- A trap up move followed by a failed test of demand
- Successful test of supply followed by markup
- Bullish validation followed by selling climax
- Absorption of sellers followed by no-supply confirmation
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