hard · Volume Price Analysis wyckoff-laws
A stock has traded in a broad top for eleven weeks. Price pushes marginally above the range high on the highest volume of the entire eleven weeks, holds for two days, then reverses and closes back inside the range on the third day with volume even higher than the breakout day.
What does this specific footprint most likely represent, and what should structurally follow if the read is correct?
- This is an Upthrust After Distribution; next should come a Last Point of Supply, then a Sign of Weakness break.
- This is a Sign of Strength, so the range should be treated as re-accumulation, with a markup breakout expected next.
- This is a Spring, meaning insiders have absorbed the final supply and the range should now resolve upward into markup.
- This is a Test of Supply, so no directional bias exists yet and the range could resolve in either direction.
Sign up free to see the explanation and track your rank →
More Volume Price Analysis wyckoff-laws practice
- What is the confidence level for a short entry?
- Which phase of the Wyckoff cycle follows 'Accumulation' and is confirmed by a high-volume
- What does the volume on the rallies indicate?
- What is the Wyckoff interpretation?
- A trader is analyzing a potential 'Triple Top'. Peak 1: high… — What does this progression
- Why do markets typically fall faster than they rise, and how is this reflected in the VPA
- A stock has declined from 80 to 60. At 60, you see a series… — What is the 'Cause' in this
- If a currency pair consolidates in a 150-pip range for 8 weeks on a daily chart, what is t