medium · Volume Price Analysis vpa-core
A trader observes a 5-minute ES E-mini chart. Candle 1 is a wide-spread up candle on average volume. Candle 2 is a narrow-spread up candle on 2.5x average volume. Candle 3 is a shooting star on ultra-high volume.
Which market mechanic is occurring during Candle 2?
- Absorption of buying by institutional sellers
- Institutional stop-hunting
- No Demand from retail participants
- Bullish validation of a new trend
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