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

A stock has been trading sideways in a re-accumulation range. On a Monday, it plunges below the range's support level on high volume but recovers to close near the high. On Tuesday, it gaps higher.

What has occurred?

  1. An Upthrust trapping short sellers
  2. A Shake-out designed to flush out the last weak holders
  3. A genuine breakdown indicating the start of a mark-down
  4. No Demand as the professionals step aside

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