medium · Volume Spread Analysis wyckoff-phases-schematics
An index has been trading sideways. On Monday, it gaps up to open above an old resistance area. The volume is high, the spread is wide, and the price remains above the resistance level for the rest of the session.
How does the VSA framework classify this behavior?
- A 'strong gap-up' where professionals mark prices higher to discourage locked-in traders from selling at breakeven.
- A 'no demand' signal because the price moved too quickly for the public to participate.
- A 'weak gap-up' or 'sucker trap' designed to draw in retail buyers before a distribution phase.
- A 'shake-out' designed to trigger buy-stops and clear the way for a further decline.
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