medium · Volume Price Analysis
According to the Law of Cause and Effect, why might a three-month accumulation zone produce a larger trend than a three-day one?
- More time allows for more retail traders to enter the move.
- The length of the cause (accumulation) directly determines the magnitude of the effect (trend).
- Longer accumulation zones always result in higher volume breakouts.
- It creates a more 'oversold' condition on mathematical oscillators.
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