hard · Volume Price Analysis

Within a trading range, the FLOOR (support) has been touched four times. On the fourth touch, price prints a wide-spread DOWN bar that pokes a few ticks below the prior support lows but closes back ABOVE the support line, on the heaviest volume of all four touches. A Coulling reader interprets this fourth-touch bar as:

1. A spring/shakeout where strong hands absorb the panic selling — the high-volume penetration with an up-close above support signals accumulation, not breakdown
2. A confirmed support break, because price traded below the prior lows and the heavy volume proves sellers have finally overwhelmed the floor
3. Bearish no-demand, since repeated tests of the same support inevitably exhaust buyers and the fourth touch marks capitulation lower
4. A neutral retest, because closing back above support simply restores the status quo and the elevated volume adds no information

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