medium · Volume Spread Analysis climaxes-tests-springs-upthrusts
A stock has been in a steady mark-up phase. It produces a down-bar on low volume that closes near its high.
How should this be interpreted?
- A classic shake-out designed to trap short sellers at the recent high.
- A 'no-demand' bar, clearly signaling the definitive end of the entire mark-up phase now.
- A clear sign of weakness; the market is simply unable to maintain the ongoing rally.
- A 'test in a rising market', confirming that the uptrend is still healthy.
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