medium · Volume Price Analysis vpa-core
You observe three consecutive Equivolume boxes in a rising trend: Box 1 is tall and wide; Box 2 is tall and narrow; Box 3 is short and wide.
What is the most likely narrative for Box 3?
- The trend is accelerating higher because low volume (narrow width) lets price move upward with minimal resistance.
- The market has now entered a genuine 'No Supply' condition, quietly setting up for a decisive breakout to much higher prices soon.
- The insiders are distributing inventory into retail demand, causing a standoff where high effort produces a small price result.
- A 'Selling Climax' has just been completed here at this point, and the insiders are now beginning the markdown phase of their distribution.
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