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 real demand is present, so price will likely fall back toward the prior support line.
- A definitive reversal, since price has now reached a firm ceiling of technical resistance.
- Professional distribution, as smart money is quietly selling into strength right at the trend line.
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