medium · Volume Spread Analysis background-trend-context
You observe a wide-spread down-bar on ultra-high volume that closes on the high. However, looking left, you see three weeks of narrow-spread up-bars on high volume and two prominent Upthrusts.
Does the current high-volume down-bar still represent a professional Shakeout?
- No, it is a Buying Climax because the volume is excessive.
- Yes, because the professionals are using the Upthrusts to hide their accumulation.
- No, it is likely a genuine breakdown because the background contains clear signs of Distribution.
- Yes, high volume and a close on the high always indicate professional support regardless of background.
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