medium · Volume Spread Analysis climaxes-tests-springs-upthrusts
A stock undergoes a 'shake-out' on bad news, characterized by a wide-spread down-bar on ultra-high volume that closes on the high.
To confirm this as a buy signal, what must the practitioner observe next?
- A decrease in the Close Position (CP) on subsequent bars.
- A series of up-thrusts to trap remaining sellers.
- An immediate breakout to new highs on ultra-high volume.
- A test of the shake-out area on low volume.
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