easy · Volume Price Analysis testing
A trader is monitoring an accumulation zone between $35 and $38. The price dips to 34.50 and closes back at 35.20with volume that is 0.3x the average.
What is the next logical step according to VPA principles?
- Wait for a high-volume spring to confirm institutional interest.
- Expect a further decline since the volume was too low to support the price.
- Prepare for a long entry as this is a successful test of supply.
- Exit any positions as the support at 35 has failed.
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