medium · Volume Spread Analysis wyckoff-phases-schematics
An index has been trading sideways in a range for three weeks after a buying climax. Price pushes above the upper boundary of the range, but then falls back to close near its low on high volume.
What is the most likely outcome of this move?
- The move is an up-thrust after distribution designed to trap breakout buyers before the mark-down begins.
- This is a sign of strength, showing that all remaining supply near the range top has been absorbed.
- The price action suggests professional buyers are supporting this new high ground despite the low close.
- The high volume confirms a successful breakout undergoing a brief, temporary shake-out before it resumes higher.
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