medium · Volume Spread Analysis effort-vs-result-spread
A stock experiences a 'Shakeout' on Day 1 (Wide down, ultra-high volume, closes high). Day 2 is a 'Test' (Dips, low volume, closes high).
What does the 2-day composite bar tell the practitioner?
- The composite is an Upthrust because the price recovered.
- The ultra-high volume on the composite bar makes it a 'Buying Climax'.
- The composite is a 'super-test' that confirms supply removal with higher conviction.
- The composite is weak because the total volume is high.
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