easy · Volume Spread Analysis climaxes-tests-springs-upthrusts
A 'Spring' occurs when the price briefly penetrates below the support line of an accumulation range on low volume.
Why is low volume critical for this to be a buy signal?
- It signals that the stock is about to be delisted
- It proves that no large-scale selling emerged to validate the breakdown
- It indicates that the market-makers have closed their books for the day
- It shows that the public is too bored to sell
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