medium · Volume Spread Analysis wyckoff-phases-schematics
You observe 'Supply Entering' the market (narrow-spread up-bar, fresh highs, ultra-high volume). The next bar is a wide-spread down-bar. However, the third and fourth bars are 'Tests' (down intraday, high close, very low volume).
What is the market telling you through this sequence?
- The initial supply is being tested and successfully absorbed by professionals, turning the potential weakness into a 're-accumulation' setup.
- The market is entering a 'Buying Climax', and the low-volume bars afterward are 'No Demand' bars simply disguised as genuine 'Tests'.
- The wide-spread down-bar itself was really 'Professional Support' in clever disguise, which retroactively makes the initial high-volume bar appear bullish.
- The 'Tests' are essentially guaranteed to fail because 'Supply Entering' is widely regarded as a terminal, uptrend-ending signal all on its own.
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