hard · Volume Spread Analysis climaxes-tests-springs-upthrusts
In a distribution range, you observe an Up-Thrust where the price penetrates the upper boundary on high volume but closes on the low. A few bars later, the price attempts to rally but produces a narrow spread up-bar on volume lower than the prior two bars (RV < 0.50).
What does this specific sequence confirm?
- Supply Overcoming Demand is being retested now for a genuine upside breakout.
- The market is preparing for a classic Wyckoff 'Spring' to flush out the remaining weak shorts.
- The professional money has finished distributing and is no longer supporting the market.
- Professional Support is absorbing all the fresh supply that keeps entering near the current highs.
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