Negative Response to a Positive Signal
Volume Spread Analysis glossary · Climaxes, Tests, Springs & Upthrusts
Definition
A normally bullish signal that the market fails to act on within 2–3 bars. The non-response is itself a strong sign of weakness — the professionals saw the same signal; if they were bullish, they would have bought, producing an up-move. Their inaction reveals ongoing bearishness.
Negative Response to a Positive Signal in plain English
Sometimes the market flashes a sign that usually means 'prices are about to go up' — but then nothing happens for the next couple of bars (a bar is one chunk of time on the chart, like an hour or a day). That silence is the whole point. The big professional traders saw that exact same signal you did, and if they'd wanted to buy, they would have piled in and pushed the price up. Their refusal to act is like a coach who ignores the perfect opening to score — it tells you they secretly expect the play to fail, so the market is really still weak underneath.
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