hard · 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 high and the markup is about to accelerate
- The market is oversold and a 'V' recovery is imminent
- Supply is still present and the market is not yet ready for a markup
- Professionals are using a shake-out to trap retail short sellers
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