medium · Volume Price Analysis Support, Resistance & Breakouts
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:
- A spring/shakeout where strong hands absorb the panic selling — the high-volume penetration with an up-close above support signals accumulation, not breakdown
- A confirmed support break, since price traded below the prior lows on the heaviest volume yet, proving sellers have finally overwhelmed the floor decisively
- Bearish no-demand, because repeated tests of one support level exhaust buyers over time, and the fourth touch simply marks capitulation into new lows
- A neutral retest — closing back above support merely restores the prior status quo, and the extra volume on this touch adds nothing predictive
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