medium · Volume Spread Analysis wyckoff-phases-schematics
An index has traded sideways between $15,200 and 15,500 for six weeks. A bar moves below the 15,200 support level to $15,140 on low volume, then recovers to close at $15,230. The next bar is a wide-spread up-bar on high volume.
How should a practitioner classify the move to $15,140?
- An up-thrust after distribution that was misidentified due to price location.
- A spring, which functioned to flush out weak holders and trigger sell-stops.
- A test of supply that failed because it moved too far below the support line.
- A genuine breakdown indicating the start of a mark-down phase.
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