medium · Volume Spread Analysis climaxes-tests-springs-upthrusts
At the very end of a distribution range, you see an 'Upthrust After Distribution' (UTAD). The price makes a sharp move above the range, triggers buy-stops, and then falls back to close inside the range on relatively low volume.
Why is low volume on this UTAD particularly bearish?
- It reveals that there is no professional demand to support the breakout, making the move purely a trap to catch stops.
- It shows 'No Selling Pressure' at these particular highs, meaning the price will likely stabilize soon.
- Low volume here indicates that all of the remaining supply has been fully removed and the breakout is therefore genuine.
- The low volume here actually indicates that the market is in a bullish 'Spring' phase about to rally aggressively higher.
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