easy · Volume Spread Analysis background-trend-context
A stock is trading in a downtrend. It produces a bar that dips into a support level and closes on its highs, but the volume is average-to-high.
What does this 'failed test' imply?
- Sellers are still present and a re-test is likely
- This is a 'no selling pressure' signal
- The bottom is confirmed and you should buy immediately
- Professional money has completely exited the market
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