hard · Volume Spread Analysis
In the 'Cumulative Operator' theory, why is a 'Spring' often followed by a 'Test of the Spring'?
- To fill the 'Exhaustion Gap' created by the initial plunge.
- To allow 'Weak Holders' a final chance to exit at a profit.
- To verify that the supply removed during the shake-out has not returned to the market.
- To generate enough 'No Demand' signals to justify a mark-down.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis practice
- An equity averages a daily volume of 1,000,000 shares. Today… — How should this volume lev
- While observing a downtrend, you see a bar that dips into fr… — What does this indicate to
- A stock gaps up $3.00 on a positive earnings report after a… — How should this scenario be
- The S&P $500 index drops 5% over a week. During this same pe… — What is this 'relative str
- During a distribution phase, how do professionals use 'Good News' to facilitate their stra
- A 'Failed Test' is identified when a price probe into a prio… — What does this signal to t
- A 'No Demand' bar is identified by a narrow spread up-bar wi… — Why does this signal often
- In the Accumulation phase, why does volume typically remain low on rallies within the trad