medium · Volume Spread Analysis supply-demand-smart-money
A stock has been trading in an accumulation range between 48 and52. A bar appears that opens at 48.50, drops to47.20 (penetrating prior support), and closes at $48.30. The volume is significantly lower than the average of the prior 20 bars.
What is the structural significance of this bar?
- A successful test of supply
- An up-thrust trap
- A high-volume shake-out
- A genuine bearish breakdown
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