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 action must break clearly above the previous swing high, proving the path of least resistance has turned 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 recent average, clearly showing professional buyers are actively defending this specific price level.
- The bar must be a clean up-bar that closes meaningfully higher than the prior day's close, officially confirming that the new uptrend has begun.
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