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 before the stock moves to $130.
- An 'Upthrust' on low volume, confirming a lack of demand and the start of distribution.
- A 'Hidden Upthrust' because the close was below the prior day's close.
- A 'Successful Test' of the $120 resistance level, suggesting a breakout is coming.
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