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, since the price moved much too fast for the public to meaningfully join in the buying.
- A 'weak gap-up' or 'sucker trap' meant to lure in eager retail buyers just ahead of a coming distribution phase overhead.
- A 'shake-out' engineered to trigger resting buy-stops, clearing the path for professionals to drive the price sharply lower.
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