medium · Volume Price Analysis

During an accumulation phase, a wide-spread down candle appears on 0.25× average volume and breaks the support floor. It is immediately followed by a wide-spread up candle on 2.5× average volume.

What is the Wyckoffian term for the first candle?

  1. Validated markdown: Effort and Result are balanced for a major decline.
  2. A trap down move (potential Spring) designed to shake out weak holders.
  3. A 'No Demand' bar signaling a lack of buyers at the top of the range.
  4. A 'Sign of Weakness' (SOW) indicating the start of the markdown phase.

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