hard · Volume Spread Analysis wyckoff-phases-schematics
Within Phase B of a Distribution Trading Range, price rallies from the Automatic Reaction low back up toward the level of the original Buying Climax high. The rally advances on progressively narrowing spreads, and volume on the approach to the old high runs at only 0.6× the volume recorded on the Buying Climax bar itself. The bar that finally touches the old high shows a spread narrower than the prior three bars, closes in the lower half of its own range, and comes in below the 20-bar average.
What does this specific volume and spread signature at the old high most likely indicate?
- A valid Secondary Test — the narrowing spread and sub-average volume on approach show demand fading well before matching the climax's supply.
- An Upthrust, since any rally that reaches the prior Buying Climax high inside a Distribution Range is automatically a false breakout by definition.
- A Sign of Strength, because reaching the old high at all proves demand has now absorbed every unit of remaining supply in the range.
- Inconclusive, since comparing volume levels across bars separated by several weeks is never a legitimate technique within Volume Spread Analysis.
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