easy · Volume Spread Analysis background-trend-context
A bar moves down intra-day, probes below a prior support level, and recovers to close on the high on volume that is lower than the prior two bars.
What is the most likely immediate foreshadowing?
- An immediate mark-up as the 'test' has confirmed the absence of sellers.
- A sideways market as buyers and sellers are in equilibrium.
- A breakdown as the support level has been violated.
- A selling climax is beginning.
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