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 immediately as the price crosses back above support.
- Waiting for a high-volume up-bar to gap into new high ground.
- A subsequent low-volume test of the same price area that results in a higher close.
- Checking if the parent index also broke support at the same time.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis climaxes-tests-springs-upthrusts practice
- While observing a downtrend, you see a bar that dips into fr… — What does this indicate to
- A 'Failed Test' is identified when a price probe into a prio… — What does this signal to t
- What happens during a 'Shake-Out' (SOS 34) in a market that has been in a long accumulatio
- A stock has been in a markdown phase for weeks. Suddenly, a… — What is this sequence?
- What is the professional purpose of an 'Upthrust' (SOW 2) - a wide-spread move up that col
- What VSA signal has occurred?
- A practitioner sees a 'Hidden Upthrust' on a chart. Which of the following best describes
- Which bar pattern provides the best 're-entry' opportunity during a temporary pullback in