medium · Volume Spread Analysis climaxes-tests-springs-upthrusts
A practitioner is trying to distinguish a 'Spring' from a genuine breakdown. The price penetrates a support level on high volume but closes back above the level.
What is the most reliable way to confirm this was a professional shakeout?
- Entering a long position at once whenever price closes back above support.
- Waiting for a high-volume up-bar that gaps decisively into new high ground on the chart.
- A subsequent low-volume test of the same price area that results in a higher close.
- Checking whether the parent index also broke support at the same time, then acting on that alone.
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