medium · Volume Price Analysis validation

Compare two scenarios: (A) A wide-spread up candle on low volume at the start of a session. (B) A narrow-spread up candle on ultra-high volume at the end of a long rally.

Which represents a 'Distribution' signature?

  1. Scenario B, as it shows high effort (volume) meeting massive institutional supply (absorption).
  2. Neither; Scenario A is bullish validation and Scenario B is a successful test of supply.
  3. Scenario A, since it shows insiders marking the price up on thin volume to lure in retail buyers.
  4. Both scenarios are equally valid textbook signatures of quiet accumulation by well-funded insiders.

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