medium · Volume Price Analysis
When constructing a dynamic trend channel, you notice that price advances occur on rising volume, while pullbacks occur on even higher volume.
What does this tell you about the trend?
- The trend is healthy overall because total volume keeps steadily rising
- The trend is under stress; selling pressure is stronger than the buying conviction
- The trend is entering Dow's classic 'Public Participation' stage of the cycle
- This is simply a successful, low-volume test of supply occurring on each and every pullback
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