medium · Volume Spread Analysis wyckoff-phases-schematics
In the context of a distribution phase, price pushes above a prior resistance level on an average spread, but closes near the low of the bar on volume lower than the prior two bars.
How is this bar categorized?
- A low-volume up-thrust, indicating the mark-up was not supported by professional demand and has failed.
- Absorption volume, where professionals quietly buy the available sell orders near the top.
- A sign of strength, since the market has cleared out all the sellers resting at the high of the range.
- A breakout attempt that is simply 'testing' the old resistance level again before continuing its move higher.
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