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

You observe a stock forming a 'Mushroom Top.' The rallies within the rounding formation occur on progressively lower volume, while the small dips show increasing volume. Today, the price pushes slightly above the prior day's high but closes 10% below the open on average volume.

What specific signal is this?

  1. A 'Successful Test' of the high, suggesting the mark-up will continue after the rounding is complete.
  2. A 'Hidden Upthrust' signaling that supply is quietly overwhelming the remaining buyers.
  3. A 'Bag Holding' signal where professionals are forced to support the current price levels.
  4. A 'Selling Climax' which is common at the end of a rounding distribution pattern.

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