medium · Volume Price Analysis wyckoff-laws
A market attempts to rally out of a distribution range. The candle has a deep upper wick and a narrow body, and the volume is twice the recent average.
What does this tell the VPA practitioner?
- The test of demand failed, and more selling is required
- Insiders are aggressively accumulating at the range ceiling
- The market is in a state of neutral balance
- The test of demand was successful, and the markdown can begin
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