easy · Volume Spread Analysis climaxes-tests-springs-upthrusts
A mature range suddenly breaks lower on a wide bar, then rapidly recovers above support. No additional confirmation has appeared yet.
Before acting, what is the most disciplined conclusion about “shakeout”?
- Treat the observation as provisional evidence consistent with shakeout, then compare background and subsequent bars before increasing confidence.
- Treat the observation as provisional evidence consistent with upthrust after distribution, then compare background and subsequent bars before increasing confidence.
- Treat the observation as provisional evidence consistent with selling climax, then compare background and subsequent bars before increasing confidence.
- Treat the observation as provisional evidence consistent with test of supply, then compare background and subsequent bars before increasing confidence.
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