medium · Volume Price Analysis wyckoff-laws
An uptrend is in progress. The last three candles show higher highs, but the corresponding volume bars are progressively shorter.
How should this divergence be read?
- The insiders are buying aggressively behind the scenes, and a parabolic move higher is now imminent for this instrument.
- The trend is exhausting because the insiders have withdrawn and the move is being driven by retail stragglers.
- The trend remains healthy, since lower volume simply means it takes less effort for price to rise here.
- A short squeeze is clearly unfolding right now, so traders should be adding more to their existing long positions.
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