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.

Sign up free to see the explanation and track your rank →

More Volume Price Analysis support-resistance practice

KomFi: Test Prep Made Easy

KomFi: Test Prep Made Easy — free adaptive practice for GMAT, GRE, SAT, ACT, National Real Estate Exam, Investment Banking, and finance with full explanations.

KomFi Academy is free GMAT prep and personalized GMAT help built as a training platform: 92,240+ practice questions, 30,500+ flashcards, on-demand video lectures, podcasts, and 4K slide decks. Flagship tracks: Free GMAT Prep, Free GMAT Resources, National Real Estate Exam Prep, Investment Banking Prep, Finance Prep, GRE, SAT, ACT, LSAT, MCAT, Financial Accounting, Private Equity, Private Credit, and Quantitative Finance.

Free GMAT Prep & Personalized GMAT Help

What's inside

Topics

View pricing · Read testimonials