easy · Volume Spread Analysis background-trend-context
A 'Failed Test' occurs when a bar probes lower prices but returns to close on the high with high volume.
What does this indicate about the market's readiness to advance?
- The market is in a buying climax
- It is not ready because sellers are still present
- A mark-up will begin immediately
- Professional support has been withdrawn
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
- Historical data shows that indices can make new highs long a… — Why does this 'Market Rota
- What is the resulting Background Score, and what does it imply for a potential long trade?
- 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?
- Does the current high-volume down-bar still represent a professional Shakeout?