easy · Volume Spread Analysis climaxes-tests-springs-upthrusts
After strength, price revisits a former low on narrower spread and much lower volume, then closes off the low.
Which cautious VSA reading best fits this “test of supply” example?
- The bar suggests little supply came forward, but it is meaningful only with supportive background and later demand.
- The sequence may qualify as a UTAD, but the label depends on prior distribution evidence and subsequent weakness.
- The bar may be a selling climax or stopping action; a rally and successful test would strengthen that reading.
- The revisit may be a successful test of supply; renewed heavy selling would contradict that reading.
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