medium · Volume Spread Analysis background-trend-context
An index is approaching a supply line in a downtrend channel. Bar 1 is an up-bar with a narrow spread on very high volume that fails to reach the line.
What is the most likely outcome for the trend line?
- The trend line will hold and price will reverse lower.
- The trend line will be broken on the next bar.
- The high volume indicates a successful test of supply.
- The index will enter a new accumulation phase.
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