hard · Volume Spread Analysis climaxes-tests-springs-upthrusts
An index has been in a markdown phase for several weeks. Today, it produces a wide-spread down-bar on ultra-high volume, but the price closes in the upper third of the bar. The next bar closes higher.
What is the technical name for this event and its implication?
- Stopping volume, indicating that professional buying has entered to arrest the decline.
- A shakeout, signifying the final flush of weak holders within an existing uptrend.
- Selling pressure, suggesting that the markdown is accelerating as more professionals exit.
- A selling climax, marking the absolute bottom of the bear market and the start of a mark-up.
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