hard · Volume Price Analysis Wyckoff's Laws & The Four Market Phases
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.
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