I recently posted ten criteria for identifying a range day. Another one is a narrow value area (blue arrows above), as the majority of volume trades within a small price range. That indicates relative consensus regarding value. When we see volume bunch into a narrow range this way, we also want to be alert for breakout trades, particularly if volume picks up overall. If we see volume--and volume at offer--pick up with price above VWAP, that could suggest an influx of buyers and a likely test of range highs.
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