medium · Volume Spread Analysis Climaxes, Tests, Springs & Upthrusts
An index has been rising on declining volume for three days. On the fourth day, the index produces a wide-spread down-bar that penetrates below the prior three days' lows on high volume.
This sequence is best described as:
- A successful test of the lows that has failed to produce an immediate result.
- A 'no demand' rally leading into a confirmation of supply overcoming demand.
- Accumulation following a brief shakeout of weak holders.
- Falling pressure, suggesting that the market is dropping under its own weight.
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