hard · Volume Price Analysis validation

How should a practitioner interpret a series of three wide-spread up candles in an uptrend where volume is consecutively $1M, $1.5M, and $2.1M?

1. This is absorption of buyers; the market is straining to move higher despite rising effort, which signals underlying weakness.
2. This is Volume-Price Divergence, meaning the trend is overextended on shrinking participation and will likely reverse soon.
3. A healthy, validated trend; rising volume with rising price (and consistent spreads) confirms institutional participation.
4. This pattern signals an imminent Selling Climax, since the rising volume shows insiders quietly dumping their remaining positions.

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