medium · Volume Spread Analysis background-trend-context
An index has traded sideways in a 'Mushroom Top' for two weeks. On Monday, price rallies on a wide spread but the volume is 30% lower than the previous two days.
How should this be interpreted?
- A 'Trap Up-Move' on low volume to catch late buyers
- A 'Sign of Strength' indicating a new breakout
- A successful test of the distribution highs
- Professional absorption of the remaining sellers
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