hard · Volume Spread Analysis climaxes-tests-springs-upthrusts
Within an established trading range, price stabs below the range's lateral support low and closes back inside the range. An analyst must distinguish a Spring from an Upthrust-in-reverse (a failed shakeout that resumes downward).
Holding the close position constant (back inside the range), which SINGLE additional observation most decisively favors the Spring interpretation over the bearish one?
- The probe below support occurred on LOW volume, and the immediate follow-through bars show no supply on rallies and a successful test of the spring low on lighter volume
- The probe below support occurred on the HIGHEST volume of the range, confirming that strong hands aggressively absorbed all the panic selling at the lows
- The recovery bar back into the range was the widest-spread up-bar of the entire range, proving demand overwhelmed supply in a single decisive stroke
- The probe undercut support by the largest margin seen in the range, since a deeper penetration flushes more weak holders and guarantees a cleaner reversal
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