hard · Volume Spread Analysis climaxes-tests-springs-upthrusts
During a sharp decline on bad news, a bar appears with an ultra-wide spread down and record-breaking volume, but it closes in the middle of its range.
What is the professional's objective in this 'Selling Climax' scenario?
- To test the strength of the resistance levels above to ensure the mark-down can continue without interference.
- To drive the price lower to clear out all remaining buy-limit orders before a final liquidation.
- To absorb the mass panic selling of weak holders at discounted prices to begin a new accumulation campaign.
- To create a 'hidden up-thrust' that will trap anyone attempting to buy the bottom of the move.
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