medium · Volume Spread Analysis background-trend-context
A 'Failed Test' occurs when a bar probes lower prices but returns to close high on high volume.
What does the high volume indicate to a VSA practitioner?
- Demand is strong and the markup phase is about to accelerate sharply
- The market is oversold, making a sharp 'V' style recovery imminent
- Supply is still present and the market is not yet ready for a markup
- Professionals staged a shake-out here specifically to trap retail short sellers
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis background-trend-context practice
- Why is the 'Background' (previous activity) considered the most important factor when read
- A stock chart shows a 'low-volume test' at $38.50. The pract… — By shorting at this point
- A practitioner sees an 'up-thrust' (wide spread up, close on… — What does this 'negative r
- Suppose a stock is approaching a known resistance level. It… — How should a practitioner v
- After a period of distribution, the market attempts to rally… — What does this indicate?
- During a distribution phase, an up-thrust appears at the top… — How does this volume confi
- Does the current high-volume down-bar still represent a professional Shakeout?
- In the context of 'relative strength,' why would a stock that refuses to fall while the pa