medium · Volume Spread Analysis background-trend-context
How does the 'background' influence the interpretation of an apparent upthrust?
- An upthrust is only high-probability if there is distribution in the background
- An upthrust in an accumulation zone is always a strong, reliable buy signal
- The background becomes irrelevant once the volume on the upthrust is high enough
- Background context only matters when analyzing daily charts, never on intraday timeframes
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