medium · Volume Spread Analysis background-trend-context
An Up-Thrust appears on a daily chart. The volume is very low, significantly below the previous two days.
How should this be interpreted compared to a high-volume Up-Thrust?
- The mark-up was on 'thin air'; there was no demand to support the higher prices.
- This is a successful test of the highs, and the market is about to breakout.
- The Up-Thrust is invalid because it lacks the high volume required to trap traders.
- Low volume indicates strength, as there is no supply to push the price down.
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