medium · Volume Price Analysis validation
If a wide-spread down candle closes at 45.20 after opening at 48.50, and the volume is the highest seen in fifty bars, why is the absence of a lower wick significant?
- It signals an impending 'trap down' move orchestrated by market makers.
- It indicates that the selling pressure remained uncontested through the close.
- It suggests that buyers are quietly accumulating shares at these lower prices.
- It proves the market has reached an oversold state and must now reverse higher.
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