hard · Volume Price Analysis
A currency pair has been declining for eight days. On the eighth day, the price falls significantly but the volume is the lowest in the entire sequence (0.9M vs 2.0M average).
What does this suggest?
- A 'Price Waterfall' is in progress, and investors should remain short.
- The selling pressure is exhausted, and the market is falling on residual momentum, not active selling.
- The insiders are distributing their remaining short positions before a gap down.
- The bearish trend is gaining strength because the price is moving easily.
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