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 seen in the range, wrongly taken as proof that strong hands aggressively absorbed all the panic selling at the low
- The recovery bar back into the range was the widest-spread up-bar of the range, treated as proving demand overwhelmed supply in one single decisive stroke without further confirmation
- The probe undercut support by the largest margin seen in the range, on the flawed logic that a deeper penetration flushes more weak holders and guarantees a cleaner reversal
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis climaxes-tests-springs-upthrusts practice
- While observing a downtrend, you see a bar that dips into fr… — What does this indicate to
- A 'Failed Test' is identified when a price probe into a prio… — What does this signal to t
- What happens during a 'Shake-Out' in a market that has been in a long accumulation phase?
- A stock has been in a markdown phase for weeks. Suddenly, a… — What is this sequence?
- What is the professional purpose of an 'Upthrust' - a wide-spread move up that collapses t
- What VSA signal has occurred?
- A practitioner sees a 'Hidden Upthrust' on a chart. Which of the following best describes
- Which bar pattern provides the best 're-entry' opportunity during a temporary pullback in