medium · Volume Price Analysis validation
Consider a 'Price Waterfall' in a commodity ETF. If the daily candles are wide-spread bearish but the volume is declining day-over-day, how should the practitioner interpret the decline?
- This marks a 'Selling Climax' reaching its final phase here
- Institutional sellers are aggressively driving the price ever lower
- The move is fully validated, so positions should now be added on this strength
- The market is falling under its own weight and a reversal is imminent
Sign up free to see the explanation and track your rank →
More Volume Price Analysis validation practice
- What is the interpretation?
- A stock is falling in a price waterfall. A candle forms with… — What is the 'effort vs. re
- A stock breaks above a three-week resistance level of $52.00… — How should a practitioner
- What is the most likely institutional activity occurring here?
- What VPA law is being applied?
- Which represents a 'Distribution' signature?
- Which of these scenarios represents a 'Validated' bearish trend move?
- An equity instrument has been in a sustained bullish trend.… — How should a practitioner i