Wyckoff trading method, page-946

Yep, it is interesting......(and I am glad you are getting something out of this thread),

......if you do this type of analysis into the future, you will ask yourself this question regularly.......it occurs quite often......

in a nutshell, only the future trading (the next few bars in particular) will help you decide where the supply is coming from.
Whether the supply is coming from the left and is being absorbed (or an attempt at absorption), or is coming from below (profit takers after price has bottomed), will not be known immediately.
Sometimes it is difficult to tell which it will be, especially when price reaches a new higher price level.
And even a 40yr veteran like David Weis will sway in either direction for a period, before it becomes clear.
(I think I offered a few tips on how you might tell which it will be at the time - if not let me know - but it can only be confirmed with future trading action)

Generally in any decent instrument (not really small or micro cap stocks, but in larger & more liquid markets), most serious supply comes from either.......the left - which is usually stale holders getting out.....from below - profit takers who bought lower down.......or new short positions being set as price pushes higher.

And as is usually the case, depending on the timeframe you are working within, you can only keep building up evidence which supports the overall story, as it slowly unfolds on the chart.......and then make decisions is support of that evidence as it appears.

cheers