medium · Volume Spread Analysis climaxes-tests-springs-upthrusts

If an index produces 'Stopping Volume' but the market continues to fall for several days without an up-move, what has occurred?

  1. The stopping volume observed here was actually nothing more than a 'hidden up-thrust' in disguise.
  2. Retail traders have successfully and quite permanently overwhelmed all of the professional market-makers here.
  3. The market is simply 're-testing' the prior climax, which is always a mandatory five-day process to fully complete.
  4. The stopping volume was a 'failed' signal, indicating that supply still outweighs the professional buying.

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