hard · Volume Price Analysis
An equity has been falling for 14 sessions. Then a single bar prints with all four of the following characteristics: an exceptionally wide spread to the downside, the highest volume seen in the past 60 sessions, a close that is in the upper half of the bar's range, and the close is below the prior session's close.
Using Anna Coulling's VPA (not Wyckoff), what phase is most likely beginning, and what is this bar called?
- A distribution phase is beginning; this bar is called a Selling Climax because strong hands are selling in volume to establish short positions
- A continuation of the downtrend is most likely; this is called an Exhaustion Bar signalling one more leg lower
- A markup phase is beginning; this bar is called a No-Supply bar because volume dried up during the decline
- An accumulation phase is most likely beginning; this bar is called a Buying Climax because professional buyers are absorbing supply at scale, with the close in the upper half confirming that strong hands are in control
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