easy · 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?
- An Upthrust trapping short sellers
- A Shake-out designed to flush out the last weak holders
- A genuine breakdown indicating the start of a mark-down
- No Demand as the professionals step aside
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