hard · Volume Spread Analysis wyckoff-phases-schematics
A Distribution Range produces two Secondary Tests of its high. The first ST reaches within a small fraction of the original Buying Climax high on volume of 1.6× average. Three days later, the second ST reaches noticeably further below that same high, on volume of only 0.8× average, with a spread narrower than the first ST's.
What does the declining volume and shrinking approach distance across these two tests indicate?
- Demand is progressively weakening on each attempt to reach the highs, which reinforces rather than negates the distribution reading of the range.
- Supply is being progressively absorbed, since a shrinking spread on a lower approach distance always signals that sellers are running out of shares.
- The range has flipped to accumulation, because any Secondary Test occurring on lower volume than the prior test is itself a bullish signal.
- The two tests are not comparable, since Wyckoff Secondary Tests are only ever measured against the original climax volume, never against each other.
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