medium · Volume Spread Analysis climaxes-tests-springs-upthrusts

What is the specific meaning of a 'Negative Response' to a successful test signal?

  1. The market immediately breaks to new lows on high volume the very next bar.
  2. The market fails to move higher within 1 to 3 bars, indicating the professional operators are still bearish.
  3. The next bar is an up-bar but on lower volume than the test bar itself.
  4. The test bar closes in the lower half of its range despite low volume.

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