medium · Volume Spread Analysis effort-vs-result-spread
A stock breaks above a 10-week accumulation range on high volume. Two bars later, it pulls back to the breakout level on very low volume and produces a bar that closes in its upper third. This is followed by a wide-spread up-bar on increased volume.
What is this sequence?
- A 'UTAD' trapping late buyers
- A 'Test of Breakout' followed by continuation
- A 'Failed Test' signaling a return to the range
- A 'Buying Climax' leading to distribution
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