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 this wide breakout has already failed.
- A no-demand bar, which signals that the current rally is already over.
- An up-thrust after weakness that quietly traps eager buyers before the reversal.
- A test of the breakout, confirming old resistance is now support.
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