medium · Volume Price Analysis climactic

A trader misinterprets Stopping Volume as 'Strong Bearish Momentum'.

What is the most likely outcome of their short entry?

  1. They will capture the meat of the move for a time, but the accelerating waterfall soon stalls out.
  2. They will be trapped as the market enters a sideways accumulation phase or reverses.
  3. They will benefit from the classic Upthrust pattern following the high-volume bar.
  4. They will likely exit at break-even as the No Supply bar triggers a cover.

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