hard · Volume Price Analysis vpa-core
A stock trades in a well-defined range for six weeks. Price pushes above range resistance on volume 2x average, then closes back inside the range near its low, an Upthrust. Three days later, price pushes above the same resistance a second time, this time on volume only 60% of average, and again closes back inside the range.
How should the second push above resistance be classified, and what does it confirm?
- A No Supply bar, since the reduced volume on the push confirms sellers have withdrawn from the market entirely.
- A Spring, since the second failed push on lower volume shows smart money quietly accumulating ahead of a breakout.
- A low-volume retest of the Upthrust level, confirming an absence of fresh buying and reinforcing that the range is likely to break down.
- A second Upthrust in its own right, since any close back inside the range after breaking resistance automatically qualifies regardless of volume.
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