medium · Volume Spread Analysis wyckoff-phases-schematics
A successful test of supply is observed on a daily chart. However, over the next three bars, the price drifts sideways to slightly lower instead of rallying. This 'negative response' indicates:
- The accumulation phase is expanding to absorb even greater supply volume.
- Short sellers are trapped and the market is about to gap up sharply.
- The market is entering a genuine 'Mark-Up' phase, confirmed by strong volume on the advance.
- The background weakness is likely overriding the apparent strength of the test.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis wyckoff-phases-schematics practice
- During a distribution phase, how do professionals use 'Good News' to facilitate their stra
- Why is the '90-Minute Reporting Delay' on the London Stock Exchange significant for VSA pr
- In the Accumulation phase, why does volume typically remain low on rallies within the trad
- In the 'Mushroom Top' distribution pattern, why do prices round over gradually rather than
- A stock gaps up $3.00 on a positive earnings report after a… — How should this scenario be
- A stock gaps up from $78 to $81.50 following a positive earn… — How should a practitioner
- What is the diagnosis?
- To follow the 'Checklist for Going Short,' when should the trader ideally execute the entr