hard · Volume Spread Analysis climaxes-tests-springs-upthrusts
A practitioner is analyzing a 5-minute chart of Ethereum. The funding rate in the perpetual futures market is extremely positive (+0.1% per 8 hours). Price pushes above a 2-hour resistance level on high volume, but the spread is narrow and the close is in the middle of the bar.
What is the most likely outcome?
- The market is absorbing the resistance and will continue its mark-up after a brief rest.
- A shake-out is imminent to clear the high funding before the next leg up.
- The market will likely reverse because professionals are selling into the leveraged long demand.
- The positive funding rate confirms strong professional buying support for the breakout.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis climaxes-tests-springs-upthrusts practice
- What is the professional purpose of an 'Upthrust' - a wide-spread move up that collapses t
- A 'Failed Test' is identified when a price probe into a prio… — What does this signal to t
- A stock has been in a markdown phase for weeks. Suddenly, a… — What is this sequence?
- While observing a downtrend, you see a bar that dips into fr… — What does this indicate to
- What happens during a 'Shake-Out' in a market that has been in a long accumulation phase?
- What VSA signal has occurred?
- What third signal is required to complete Bearish Sequence 3?
- A practitioner sees a 'Hidden Upthrust' on a chart. Which of the following best describes