medium · Volume Price Analysis vpa-core
A stock has been in a sustained uptrend for several weeks. At the most recent peak, you observe a narrow-spread up candle with a small body and minimal wicks, but the volume is 2.5× the 20-day average.
What is the most accurate interpretation of this market signature?
- The market is experiencing high-volume absorption and distribution by insiders.
- The insiders are testing for supply before initiating a more aggressive markup phase.
- This represents a validated bullish move as the high volume confirms the upward direction.
- This is a 'No Demand' bar indicating the trend is exhausted due to a lack of participants.
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