medium · Volume Spread Analysis supply-demand-smart-money
A 'Mushroom Top' is a specific distribution pattern. How does it differ from a 'Buying Climax' in terms of volume and price action?
- The 'Mushroom Top' involves a slow rounding-over with subtle signs of weakness like 'No Demand' bars, while a 'Buying Climax' is a dramatic high-volume event.
- A 'Mushroom Top' unfolds slowly and quietly on low volume early in a topping move, whereas a 'Buying Climax' occurs suddenly and violently at the very end.
- The 'Mushroom Top' is actually considered a bullish re-accumulation pattern for the next markup, while the 'Buying Climax' is a distinctly bearish topping signal.
- A 'Mushroom Top' pattern must close consistently on the high of its developing range, while a 'Buying Climax' bar typically closes somewhere near the middle instead.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis supply-demand-smart-money practice
- When observing a 15-minute chart of a stock traded in London… — Why might a VSA practition
- Very bad news breaks for a major retail stock. Instead of th… — What is the likely objecti
- Why is the classification of 'Relative Volume' more important than 'Absolute Volume' when
- A 'No Demand' bar is identified by a narrow spread up-bar wi… — Why does this signal often
- The S&P $500 index drops 5% over a week. During this same pe… — What is this 'relative str
- Which of the following describes the behavior of 'Strong Holders'?
- An index has been rising for months. You identify a stock th… — What does this indicate?
- In the context of 'Smoke-Filled Room Syndrome,' why do multiple professional operators oft