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

During a distribution phase, a stock makes a lower high on an up-bar with a spread of only $0.40 and volume lower than the prior two bars.

What is the most likely next movement according to VSA principles?

  1. A downward move, as the 'No Demand' signal confirms professional absence.
  2. A period of 'Bag Holding' to support the price.
  3. A successful test of the upside to probe for buyers.
  4. An immediate breakout above the distribution range.

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