hard · Volume Price Analysis support-resistance

A trader observes a 'Falling Triangle' pattern. The floor is horizontal at $62.50, and the rally peaks are getting lower ($66.00, $65.20, $64.50).

If the rallies are occurring on progressively lower volume, what is the VPA conclusion?

  1. The pattern is 'Churning' and will likely resolve into a sideways breakout
  2. The pattern is a 'Spring' still developing, which will eventually lead to a markup
  3. The pattern is bearish because buying pressure is exhausting on each attempt to rally
  4. The pattern is bullish because the floor is being defended repeatedly on rising volume levels

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