medium · Volume Spread Analysis climaxes-tests-springs-upthrusts
A stock has been in a markdown phase for weeks. Suddenly, a bar appears with the widest spread down in months on ultra-high volume, closing in the middle. The next day, the price moves up.
What is this sequence?
- An 'End of a Rising Market' signal that has been misidentified.
- A Potential Selling Climax followed by confirmation of professional buying.
- A 'No Demand' bar indicating that professionals have stopped selling.
- A 'Trap Up-Move' designed to catch retail buyers before the final collapse.
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