medium · Volume Spread Analysis climaxes-tests-springs-upthrusts
During a Mark-Down phase, an index produces a low-volume up-bar with a narrow spread. This is followed by a wide-spread down-bar on increased volume.
What does this sequence confirm to the practitioner?
- The market is forming a genuine Selling Climax right here, and a sharp bullish reversal in price is now imminent.
- The low-volume up-bar was technically a Successful Test of supply, yet it ultimately failed to produce a meaningful result.
- The professionals are quietly accumulating stock on the down-bar itself, absorbing available supply through Absorption Volume.
- The rally attempt had No Demand, and the subsequent bar confirms Selling Pressure and the path of least resistance is down.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis climaxes-tests-springs-upthrusts practice
- While observing a downtrend, you see a bar that dips into fr… — What does this indicate to
- A 'Failed Test' is identified when a price probe into a prio… — What does this signal to t
- What happens during a 'Shake-Out' in a market that has been in a long accumulation phase?
- A stock has been in a markdown phase for weeks. Suddenly, a… — What is this sequence?
- What is the professional purpose of an 'Upthrust' - a wide-spread move up that collapses t
- What VSA signal has occurred?
- A practitioner sees a 'Hidden Upthrust' on a chart. Which of the following best describes
- Which bar pattern provides the best 're-entry' opportunity during a temporary pullback in