medium · Volume Price Analysis
A markdown starts with a gap down on the daily chart. During the first hour of trading, the gap is tested and held, but the volume on the test is ultra-low.
How should this be interpreted?
- The markdown is failing because volume was not high on the test
- The gap is a 'trap down' and should be bought immediately
- The gap down is a genuine shift in sentiment and the markdown is validated
- A 'Buying Climax' is forming to fill the gap
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