hard · Volume Price Analysis
After a sustained downtrend, a wide-spread down bar closes near its low on the highest volume in months (a buying climax in Coulling's terms). Over the next nine sessions price grinds modestly higher on progressively shrinking volume, then prints a second wide-spread down bar that marginally undercuts the climax low — but this time volume is conspicuously LIGHT.
What is the most precise VPA reading of this light-volume undercut?
- A successful test of the buying climax — the absence of supply on the lower low confirms the smart-money absorption and validates the prospective reversal.
- A failed test, because a valid test must hold above the climax low; undercutting it on any volume reasserts the downtrend.
- A bearish no-demand bar that, by undercutting the low, signals professional money is still distributing into the decline.
- An inconclusive bar requiring a third probe, since one light-volume bar cannot distinguish absorption from a simple pause in selling.
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