medium · Volume Spread Analysis wyckoff-phases-schematics
A successful test of supply is observed on a daily chart. However, over the next three bars, the price drifts sideways to slightly lower instead of rallying. This 'negative response' indicates:
- The accumulation phase is expanding to include more volume.
- Short sellers are trapped and the market is about to gap up.
- The market is entering a 'Mark-Up' phase on low volume.
- The background weakness is likely overriding the apparent strength of the test.
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