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

The algorithm for 'Stopping Volume' includes the condition C_t+1 ≥ C_t.

What is the statistical purpose of this 'forward-looking' component?

  1. To identify if the market is entering a Mark-Up phase immediately.
  2. To calculate the Background Score more accurately for the next 25 bars.
  3. To confirm that professional buying has successfully arrested the decline.
  4. To determine the Relative Spread of the following day's activity.

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