hard · Volume Price Analysis

Price breaks above a well-tested resistance on a wide up bar with strong volume, then over the next two bars pulls back to retest the broken level. The retest bar is a narrow-spread down bar that holds exactly at old resistance and closes off its lows, but its volume is HIGH — comparable to the breakout bar. In Coulling VPA, the high volume on this otherwise-textbook successful retest most precisely signals:

1. Hidden supply is still contesting the level, so the breakout is suspect despite the hold — a valid retest should occur on LOW volume
2. A flawless retest, because price held the level and closed off its lows, and volume on a retest is irrelevant once support proves itself
3. Immediate continuation is guaranteed, since high volume at support always represents fresh buyers stepping in to defend the breakout
4. The breakout has already failed, because any high-volume bar at a former resistance level mechanically marks a return inside the range

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