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Does High Volume at Range Extremes Signal Reversal or Continuation?

Earl Christian

Classic chart reading claims high volume at a resistance level proves strong interest and an impending breakout. Modern order flow analysis claims heavy volume at resistance represents passive limit sellers absorbing aggressive market buyers, leading to a sharp rejection. When you see a massive volume spike at a range high, do you prepare for a breakout or a sharp reversal?

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  • Earl ChristianOP

    Why do traditional technical analysis textbooks contradict modern order flow analysis at range boundaries?

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