hard · Volume Spread Analysis climaxes-tests-springs-upthrusts
After a period of distribution, a market attempts to rally on narrow spreads and volume that is significantly lower than the prior two bars.
How should a professional practitioner interpret this bar?
- No demand, showing that professionals are not interested in higher prices and have withdrawn their support from the rally.
- A successful test, confirming that the path of least resistance is now to the upside.
- No supply, indicating that there are no sellers left in the market and the price is set to surge.
- A temporary consolidation phase where both buyers and sellers are waiting for a news catalyst to determine the next move.
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' (SOS 34) in a market that has been in a long accumulatio
- A stock has been in a markdown phase for weeks. Suddenly, a… — What is this sequence?
- What is the professional purpose of an 'Upthrust' (SOW 2) - a wide-spread move up that col
- 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