easy · Volume Price Analysis

An uptrend is characterized as 'healthy' in the VPA framework when which of the following volume patterns is observed?

  1. Volume is constant regardless of whether the candles are bullish or bearish.
  2. Volume rises as the price falls, indicating that insiders are liquidating into the dip.
  3. Volume rises on up-candles (advances) and falls on down-candles (pullbacks).
  4. Volume falls as the price makes new highs, indicating a lack of resistance.

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