hard · Volume Spread Analysis climaxes-tests-springs-upthrusts
After a buying climax, the market drifts sideways for 10 bars. Bar 11 is an up-bar with a narrow spread and volume lower than the prior two bars, closing in the lower third. This is followed immediately by a wide-spread down-bar.
How should a practitioner interpret Bar 11?
- A no-demand bar confirming that professional interest has withdrawn.
- A successful test of supply, meaning the mark-up will resume.
- Absorption volume on the down-bar indicating that supply is being consumed.
- A shake-out on heavy volume meant to flush out the remaining weak holders.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis climaxes-tests-springs-upthrusts practice
- What is the professional purpose of an 'Upthrust' - a wide-spread move up that collapses t
- A 'Failed Test' is identified when a price probe into a prio… — What does this signal to t
- A stock has been in a markdown phase for weeks. Suddenly, a… — What is this sequence?
- While observing a downtrend, you see a bar that dips into fr… — What does this indicate to
- What happens during a 'Shake-Out' in a market that has been in a long accumulation phase?
- What VSA signal has occurred?
- What third signal is required to complete Bearish Sequence 3?
- A practitioner sees a 'Hidden Upthrust' on a chart. Which of the following best describes