medium · Volume Spread Analysis climaxes-tests-springs-upthrusts
An Index has been in a long-term uptrend. It produces an ultra-high volume up-bar into new high ground, but the spread is very narrow and the close is in the middle. The next bar is down.
Which bearish sequence is most likely beginning?
- A 'Buying Climax' followed by 'Supply Coming In,' indicating that professionals are capping the market.
- The start of accumulation, since ultra-high volume on a bar always signals genuine buying strength.
- A deliberate 'Shake-Out' designed to trap short sellers before the market resumes its final leg higher.
- A 'Test of a Breakout' that has now attracted far too much unwanted attention from the wider investing public.
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