medium · Volume Spread Analysis background-trend-context
During a distribution phase, an up-thrust appears at the top of the range. The reaction to the up-thrust is a down-bar on ultra-high volume that breaks through the bottom of the range.
How does this volume confirm the phase shift?
- The volume represents 'bag holding' as professionals support the price at the bottom of the range.
- The high volume on the breakdown shows selling pressure and the start of the mark-down phase.
- The high volume indicates a 'selling climax' is occurring at the support level.
- The breakout on high volume is likely a 'shake-out' to remove weak shorts before a rally.
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