hard · Volume Price Analysis
In Anna Coulling's Volume Price Analysis, a daily chart shows price falling sharply over six sessions and then prints a single wide-spread session that closes near its high on volume 4.5 times the 20-day average. The next session opens near the previous close and trades in a tight range on below-average volume.
How does Coulling label the wide-spread session, and what does the low-volume tight-range session that follows confirm?
- The wide-spread session is a Selling Climax (distribution top); the quiet session confirms that sellers have taken control and more downside is likely.
- The wide-spread session is a Buying Climax (accumulation bottom); the quiet session confirms that the surge of professional buying has absorbed the available supply and selling pressure has dried up.
- The wide-spread session is a stopping volume bar but cannot be classified as a climax without a subsequent test session that also closes near its high on high volume.
- The wide-spread session represents a bear trap; the tight range session is a no-demand bar that signals the downtrend will resume immediately.
Sign up free to see the explanation and track your rank →
More Volume Price Analysis practice
- A stock has been in a sustained uptrend for three weeks. A c… — How should this be interpr
- What is the specific VPA principle demonstrated here?
- During an accumulation phase, the price dips below the estab… — What is the correct Wyckof
- What is the most likely price behavior?
- What is the next step in the decision framework to confirm this is an entry opportunity?
- An up candle with a very narrow spread and very low volume a… — What does this specificall
- A practitioner is using a 233-tick chart for the ES E-mini.… — What does a 'low volume' ba
- A stock has reached the top of a distribution zone. A candle… — How should the practitione