hard · Volume Price Analysis climactic
After a Selling Climax, price rallies toward the SC high three separate times over two weeks. Each attempt shows progressively lower volume and a progressively smaller upward spread, and the third attempt fails to reach within 2% of the SC high.
What does this specific progression across three failed rallies confirm, beyond what a single failed retest would show?
- A single Last Point of Supply has now formed, meaning markdown should already be complete.
- Declining effort across three failed tests confirms genuine distribution, with markdown becoming imminent.
- Falling volume on each rally shows demand is quietly building beneath the surface for a later breakout.
- The pattern stays neutral, since declining volume on rallies is normal in any consolidation regardless of direction.
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