medium · Volume Price Analysis
During a mark up phase, if the price enters a 'Congestion Zone,' how does a VPA practitioner distinguish between 'Re-accumulation' and 'Distribution'?
- Re-accumulation is characterized by rising prices on falling volume.
- Re-accumulation shows declining volume on down-moves within the range and successful low-volume tests of supply.
- Distribution shows narrow-spread down candles on low volume.
- Distribution features hammer candles at the floor of the range to trap sellers.
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