easy · Volume Price Analysis validation
A 'Spring' occurs when the price pushes below a support level during the session but closes back above it.
If this happens on high volume, what is the VPA interpretation?
- Insiders have cleared out 'weak' holders and triggered stop-losses to collect inventory.
- This is a bearish 'trap up' move occurring right at a well-defined resistance level.
- The support level has now officially failed, confirming a markdown trend has begun.
- The market is in a truly neutral standoff and will likely just drift sideways for an extended period.
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