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 the highs, meaning the price will likely stabilize and then continue higher.
- Low volume indicates that the supply has been fully removed and the next move will be a genuine breakout.
- The low volume indicates that the market is in a 'Spring' phase and is about to rally aggressively.
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