medium · Volume Spread Analysis background-trend-context
A practitioner calculates the 'Close Position' (CP) of a bar using the formula CP = (Close - Low)/(High - Low) × 100%.
If a bar has a High of $150, a Low of $140, and a Close of $142, and the volume is 3 × the 20-day average, what is the most accurate VSA classification?
- A 'Buying Climax' because the volume is extremely high.
- A 'No Demand' bar because the price failed to close in the upper half.
- A 'Successful Test' because the price stayed within the lower portion of the range.
- Potential 'Stopping Volume' or 'Absorption' if the background is a downtrend.
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