easy · Volume Price Analysis climactic

In the context of the institutional market cycle, what is the primary purpose of stopping volume?

1. To distribute the remaining long positions onto retail traders right before a further decline sets in.
2. To accelerate the markdown phase so that retail stop-loss orders are triggered and swept.
3. To provide visible evidence of insiders beginning to absorb panic selling to halt a decline.
4. To signal that the market has entered a 'no supply' state and will therefore reverse immediately.

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