hard · Volume Spread Analysis
A 'failed test' occurs when a downward probe is met with high volume.
What does this indicate to an institutional practitioner?
- The market is ready to explode upward because the volume shows high interest.
- A short-sell signal is triggered immediately.
- Supply is still present in the market, and further testing or accumulation is required before a markup.
- The price data is corrupted and should be ignored.
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