hard · Volume Spread Analysis effort-vs-result-spread
What distinguishes a 'Shake-out' (SOS $34) from a 'Genuine Breakdown' on a high-volume down-bar?
- Breakdowns always have low volume (Falling Pressure), while shake-outs have high volume.
- Shake-outs only occur on the '90-Minute Delay' period to hide professional buying.
- Shake-outs must always close on the absolute high of the bar, whereas breakdowns close in the middle.
- The presence or absence of distribution in the background; shake-outs occur in strong backgrounds, while breakdowns follow distribution.
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