medium · Volume Spread Analysis wyckoff-phases-schematics
A stock gaps up to new high ground on a positive earnings report after a three-month rally. The day ends with a narrow spread and a close in the lower third of the bar on ultra-high volume.
What is the most likely professional maneuver occurring?
- Professional distribution into the surge of retail buying euphoria.
- Professional support at the new price level to establish a higher floor.
- A strong breakout that confirms the beginning of a parabolic markup phase.
- Absorption of supply from traders who are locked-in from previous price levels.
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