medium · Volume Price Analysis vpa-core
A practitioner observes a 'Long-Legged Doji' on a tick chart immediately after a major news release. Tick volume is significantly lower than the preceding 5 candles.
What is the most likely market intent?
- The start of a distribution phase, since the price spikes failed to hold their extended intraday range.
- A 'successful test' of both supply and demand occurring simultaneously on the very same candle.
- A genuine state of market indecision where bulls and bears are locked in a massive, evenly matched battle.
- Insiders are stop-hunting (whipping the price) to clear the order book before a real move occurs.
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