hard · Volume Spread Analysis
Identify the distinguishing feature between a 'Shake-Out' and a 'Genuine Breakdown' using VSA principles.
- A shake-out always happens on low volume, while a breakdown always happens on high volume.
- A shake-out will always gap up the following day, whereas a breakdown will continue to grind lower.
- A genuine breakdown must be accompanied by news, while a shake-out happens in a news vacuum.
- A shake-out occurs in a background of strength with no prior distribution; a breakdown follows a distribution phase.
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