hard · Volume Price Analysis climactic

Is this a reliable signal for a sustained bull trend?

1. Context is everything; after a waterfall, high volume on a wide-spread up candle usually signals a squeeze or stopping volume, needing a secondary test before a trend can form.
2. Jumping the Creek happens at the end of accumulation and marks a breakout move out of a trading range, not a sudden bounce off a waterfall decline low.
3. No; it is often a mechanical event of forced liquidation by shorts rather than sustained insider buying, and the price often settles back into accumulation afterward.
4. A squeeze inherently produces high volume, since stop-loss orders and short-covering hit the market at once, so a low-volume requirement misreads the mechanics.

Sign up free to see the explanation and track your rank →