hard · Volume Spread Analysis climaxes-tests-springs-upthrusts
A 'Selling Climax' is traditionally followed by a period of sideways trading.
Why is an immediate V-shaped recovery considered 'unlikely' in standard VSA methodology?
- The 'herd instinct' requires at least 21 days to shift from a state of fear to a state of greed.
- Market-makers are prohibited by exchange rules from marking prices up more than 5% per day after a crash.
- Retail traders are too 'locked-in' and their constant selling pressure prevents any upward movement.
- The professionals who absorbed the panic need time to 'test' the market and verify that supply is truly exhausted.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis climaxes-tests-springs-upthrusts practice
- While observing a downtrend, you see a bar that dips into fr… — What does this indicate to
- A 'Failed Test' is identified when a price probe into a prio… — What does this signal to t
- What happens during a 'Shake-Out' (SOS 34) in a market that has been in a long accumulatio
- A stock has been in a markdown phase for weeks. Suddenly, a… — What is this sequence?
- What is the professional purpose of an 'Upthrust' (SOW 2) - a wide-spread move up that col
- What VSA signal has occurred?
- A practitioner sees a 'Hidden Upthrust' on a chart. Which of the following best describes
- Which bar pattern provides the best 're-entry' opportunity during a temporary pullback in