medium · Volume Price Analysis

In a 'Double Bottom' formation, how does the volume signature on the second test distinguish a 'Continuation' from a 'Reversal'?

1. Higher volume on the second test validates the support level and confirms that a powerful reversal is now firmly underway.
2. Volume should always match exactly on both tests; any observed variation between the two signals a deliberate trap.
3. If volume is lower on the second test, it is a reversal (rejection); if volume is higher, it is likely a continuation (breakdown).
4. Lower volume on the second test always proves a breakdown is imminent, since it clearly reveals a total lack of interested remaining buyers.

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