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 this markup is being retested before continuation.
- A 'shake-out' of late buyers, which should be followed by a low-volume test and then higher prices.
- A 'successful test' of supply, confirming that professionals remain content to sell at these price levels.
- A 'Top Reversal,' indicating that the high volume on the up-bar was hidden professional distribution.
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