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

An index is at a multi-year low. It produces three consecutive days of wide-spread down-bars on ultra-high volume, with each bar closing in the upper half of its range.

What is the most accurate VSA assessment?

  1. A 'Mushroom Top' in reverse, showing a gradual transition to a bull market.
  2. A 'Mark-Down' phase that will likely accelerate as support has been completely lost.
  3. A massive Selling Climax where professional money is absorbing the panic of weak holders.
  4. A series of 'Up-thrusts' that are trapping traders who are trying to pick the bottom.

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