medium · Volume Spread Analysis climaxes-tests-springs-upthrusts
You observe a wide-spread down-bar on ultra-high volume that closes in the upper third of its range after a prolonged decline. The next bar closes higher.
What is the institutional read of this sequence?
- Confirmed stopping volume, indicating that professional buying has absorbed the panic selling of weak holders, effectively arresting the decline.
- A selling climax means the bear market has already fully ended, and a mark-up phase will begin at once without any further testing.
- A shake-out is designed to trigger buy-stop orders placed by weak holders, and it typically occurs near the top of a distribution trading range.
- No selling pressure is present here, suggesting the market is falling under its own weight since professionals withdrew their bids from the tape entirely.
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