medium · Volume Price Analysis validation
In a validated downtrend, you observe a sequence of three down-candles. The bodies are widening (%1 drop, %2 drop, %3 drop), but the volume bars are declining (2.1M, 1.5M, 0.9M).
How should this sequence be interpreted?
- An anomaly suggesting the selling pressure is exhausted and a reversal is near.
- A successful, low-volume test of demand executed by insiders here.
- The early start of a markup phase driven by quiet, hidden institutional buying now.
- A price waterfall showing healthy, high-volume bearish momentum that keeps accelerating lower.
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