hard · Volume Spread Analysis climaxes-tests-springs-upthrusts
After a markup, a stock hits 120 on an 'End of a Rising Market' signal (narrow-spread high-volume up-bar). It then trades sideways. A new bar reaches122 but closes at $118 on volume lower than the prior two bars.
What is this secondary signal?
- A 'Shake-Out' of weak shorts, priming the stock to rally toward $130 next.
- An 'Upthrust' on low volume, confirming a lack of demand and the start of distribution.
- A 'Hidden Upthrust,' since intrabar action closed under the prior day's own close.
- A 'Successful Test' of $120 resistance, implying an imminent breakout to new highs.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis climaxes-tests-springs-upthrusts practice
- What is the professional purpose of an 'Upthrust' - a wide-spread move up that collapses t
- A 'Failed Test' is identified when a price probe into a prio… — What does this signal to t
- A stock has been in a markdown phase for weeks. Suddenly, a… — What is this sequence?
- While observing a downtrend, you see a bar that dips into fr… — What does this indicate to
- What happens during a 'Shake-Out' in a market that has been in a long accumulation phase?
- What VSA signal has occurred?
- What third signal is required to complete Bearish Sequence 3?
- A practitioner sees a 'Hidden Upthrust' on a chart. Which of the following best describes