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

A 'Failed Test' is identified when a price probe into a prior support area is accompanied by high volume.

What does this signal to the practitioner?

  1. The market is extremely strong because so much volume was traded at the lows.
  2. The trend has immediately reversed into a bear market.
  3. Professionals have completely finished their accumulation campaign.
  4. Sellers are still active in that area, and the market is not yet ready to rise.

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