medium · Volume Spread Analysis climaxes-tests-springs-upthrusts
A practitioner sees an ultra-high volume up-bar into new high ground that closes on its high. The next bar is a wide-spread down-bar that closes below the low of the first bar.
What does this two-bar sequence represent?
- An 'effort versus result' anomaly where the markup is being tested before continuation.
- A 'shake-out' of late buyers that will be followed by a low-volume test and higher prices.
- A 'successful test' of the supply, showing that professionals are happy to sell at these levels.
- A 'Top Reversal,' indicating that the high volume on the up-bar was hidden professional distribution.
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