medium · Volume Spread Analysis wyckoff-phases-schematics

An equity has been in an accumulation zone between $45 and $50. It gaps up to open at $52 on high volume following a positive earnings report. By the end of the day, the price is at $50.50, and the volume is 4.0x the average.

How should this be classified?

  1. A Strong Gap-up where professionals absorb all available selling to ensure the mark-up phase continues.
  2. A 'Weak Gap-up' where professionals used the good news to distribute their holdings into retail FOMO.
  3. A Shake-out designed to trigger short-stops before the stock rallies sharply to sixty dollars.
  4. A Successful Test of the fifty level, confirming that the accumulation phase is now fully complete.

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