easy · Volume Price Analysis

In a 'price waterfall', what is the significance of declining volume bars alongside falling prices?

1. It indicates that insiders are aggressively shorting the market to accelerate the fall.
2. It validates the strength of the downtrend and signals further cascades.
3. It confirms that the market is in a state of 'oversold' according to oscillators.
4. It signals that the selling pressure is exhausting and a reversal may be near.

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