easy · Volume Spread Analysis wyckoff-phases-schematics

A trader sees a 'test' bar. The background shows a 'buying climax' occurred ten bars ago.

What is the most likely outcome for the test?

  1. The buying climax from ten bars ago was erased by the three days of low volume.
  2. The test will fail to produce a rally because the background is dominated by supply.
  3. The test only works if the news is positive and attracts more retail buyers.
  4. The test will lead to a new all-time high because tests are 100% reliable.

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