medium · Volume Spread Analysis background-trend-context
A stock has been in an accumulation range (30.00–34.00) for two months. It produces a wide-spread up-bar from 33.50 to36.00 on volume that is 2.4 × the average.
What is this signal called, and what is the expected follow-up?
- Up-thrust; expect a negative response and continued accumulation in the range.
- Buying Climax; expect an imminent collapse back toward $30.00.
- Sign of Strength (breakout); expect a low-volume 'Back-Up' to $34.00.
- No demand signal; wait patiently for materially lower prices.
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