medium · Volume Spread Analysis wyckoff-phases-schematics
A stock is rising within a healthy trend channel. It approaches the upper supply line on high volume with a wide spread and a high close.
What does this indicate?
- Effort to penetrate the supply line, indicating a potential overbought condition or breakout.
- No demand is present, so the price will likely fall back to the support line.
- A definitive reversal because the price has reached a 'ceiling' of resistance.
- Professional distribution, as they are selling into the strength at the trend line.
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