medium · Volume Price Analysis support-resistance

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?

  1. A steep 'Price Waterfall' is clearly in progress, and investors should remain short here.
  2. The selling pressure is exhausted, and the market is falling on residual momentum, not active selling.
  3. The insiders are quietly distributing their remaining short positions ahead of an anticipated gap down.
  4. The bearish trend is gaining real momentum and strength because the price keeps moving lower with such apparent ease.

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