medium · Volume Spread Analysis climaxes-tests-springs-upthrusts
You observe a 'no demand' bar (narrow spread, low volume up-bar) appearing in a market that has recently undergone a major shake-out and successful testing.
How should this signal be prioritized?
- The signal indicates a mushroom top is forming, since the market is now visibly rounding over on light volume.
- The signal is a definitive short entry because it confirms the professionals have fully withdrawn from the market.
- The 'no demand' bar acts as confirmation of the completed shake-out, proving conclusively that sellers are no longer active.
- The signal should be discounted because the dominant background strength overrides the temporary lack of buying interest.
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