Test
Volume Price Analysis glossary · Testing Supply/Demand & Continuation Signals
Definition
A deliberate price move into a former congestion zone to check for residual supply (sellers) or demand (buyers). Low volume confirms the test; high volume fails it.
Test in plain English
After a big move, smart traders want to know if any leftover sellers (or buyers) are still lurking at an old price zone before they commit. So they deliberately nudge price back into that zone and watch the volume. If almost no one trades — low volume — it means the leftover crowd is gone and the coast is clear, so the test passes; if volume spikes, plenty of them are still there and the test fails. It's like knocking on a door to check if anyone's home: silence means empty, a loud answer means the room's still full.
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