hard · Volume Price Analysis
Apply Wyckoff's Second Law to a scenario where a market consolidates in a 200-pip range for five months.
What does this indicate about the subsequent trend?
- Volume will naturally decline during the breakout because the cause was so extensive.
- The breakout will be volatile but short-lived as the market has exhausted its energy in the range.
- The market is likely to reverse immediately as long consolidation periods always lead to trend failure.
- The move (effect) will be proportionally larger and more sustained due to the long duration of the cause.
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