hard · Volume Price Analysis
A trader observes a 'Falling Triangle' pattern. The floor is horizontal at $62.50, and the rally peaks are getting lower ($66.00, $65.20, $64.50).
If the rallies are occurring on progressively lower volume, what is the VPA conclusion?
- The pattern is 'Churning' and will likely lead to a volatile sideways breakout
- The pattern is a 'Spring' in development which will lead to a markup
- The pattern is bearish because buying pressure is exhausting on each attempt to rally
- The pattern is bullish because the floor is being defended on higher volume
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