medium · Volume Spread Analysis climaxes-tests-springs-upthrusts
In the 'Cumulative Operator' theory, why is a 'Spring' often followed by a 'Test of the Spring'?
- To fill the price gap left behind by the initial sharp plunge below support.
- To give weak-handed holders one final, profitable chance to exit before the mark-up begins.
- To verify that the supply removed during the shake-out has not returned to the market.
- To generate enough No Demand signals on subsequent rallies to justify an eventual mark-down of the range.
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