hard · Volume Price Analysis
A trader maps a market as: a multi-week base (Phase A), a sloping advance with rising volume on up-bars (Phase B), a sharp blow-off rally that finally fails (Phase C), and a slow grinding decline (Phase D).
Under Wyckoff's four phases as Coulling teaches them, what is the single most serious error in this mapping?
- Phase C should be the accumulation base and Phase A the markup, so the labels are simply rotated one step forward
- The grinding decline is mislabelled: distribution must precede the markdown, so the failing blow-off is the distribution phase and the decline is the markdown that follows it
- Phase B cannot show rising volume on up-bars because markup always proceeds on declining participation by design
- The base should be labelled distribution because every multi-week sideways structure that precedes an advance is by definition a distribution zone
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