medium · Volume Spread Analysis climaxes-tests-springs-upthrusts
What is the primary requirement for a 'Successful Test' to be considered a high-probability buy signal during the transition into a markup phase?
- The price must break above the previous swing high to prove that the path of least resistance is currently upward.
- There must be clear signs of strength in the background, such as stopping volume or a selling climax, to validate the removal of supply.
- The volume must be at least double the 20-day average to show that professional buyers are actively defending the price level.
- The bar must be an up-bar, closing higher than the previous day to confirm that the uptrend has officially started.
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