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Does High Volume at Range Extremes Signal Reversal or Continuation?

Earl Christian

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

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