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

What happens during a 'Shake-Out' in a market that has been in a long accumulation phase?

  1. A slow drift downward on very low volume that eventually breaks below key support.
  2. A sudden, wide-spread down-bar on high volume that quickly recovers to close on the high.
  3. A narrow-spread up-bar on ultra-high volume that marks the start of distribution near a top.
  4. A gap-up into new high ground on thinning volume, followed almost immediately by a sharp reversal lower.

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