medium · Volume Price Analysis wyckoff-laws
According to the Law of Effort vs. Result, how should a trader interpret a narrow-spread up candle accompanied by ultra-high volume at the end of a long bullish trend?
- It indicates a quiet market where neither buyers nor sellers are participating.
- It represents a successful low-volume test of demand by market makers.
- It is a bullish validation signal confirming that the trend has strong momentum to continue higher.
- It is a bearish anomaly indicating that the market is absorbing significant selling pressure from insiders.
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