hard · Volume Price Analysis vpa-core
A commodity futures contract has fallen for six weeks into a well-defined trading range. Deep inside the range, price prints a wide-spread down candle that closes near its low on 3.2x average volume, piercing the range's lower boundary intraday before closing back inside it.
According to the VPA framework, what does this candle most likely represent?
- A Selling Climax, confirming panic distribution by insiders here
- Stopping Volume, an early sign of insiders absorbing supply
- A textbook No Demand bar showing sellers have vanished
- An Upthrust, since price pierced the boundary and failed to hold
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