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

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