medium · Volume Price Analysis validation
An Upthrust occurs at the top of a distribution range. The candle pushes through resistance, then closes back inside with a long upper wick and volume that is four times the daily average.
What does the high volume signify in this scenario?
- The move is a 'trap down' move that will eventually recover as buyers regain control.
- The high volume validates the rejection and proves that supply has finally exceeded demand.
- Insiders have triggered buy-stops and used that demand to dump their remaining long inventory.
- Insiders are stop-hunting on low participation to clear the way for a genuine breakout higher.
Sign up free to see the explanation and track your rank →
More Volume Price Analysis validation practice
- What is the interpretation?
- A stock is falling in a price waterfall. A candle forms with… — What is the 'effort vs. re
- A stock breaks above a three-week resistance level of $52.00… — How should a practitioner
- What is the most likely institutional activity occurring here?
- What VPA law is being applied?
- Which represents a 'Distribution' signature?
- Which of these scenarios represents a 'Validated' bearish trend move?
- An equity instrument has been in a sustained bullish trend.… — How should a practitioner i