medium · Volume Spread Analysis background-trend-context
A stock breaks above a three-month accumulation range on a wide-spread up-bar with high volume. Two days later, the price pulls back to the top of that old range on very low volume and closes on its high. This pullback is:
- A sign of weakness as the breakout has failed.
- A no-demand bar indicating the rally is over.
- An up-thrust after weakness, trapping buyers.
- A test of the breakout, confirming old resistance is now support.
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