medium · Volume Price Analysis validation
Identify the 'Asymmetry Rule' regarding volume and trend direction.
- Uptrends require ultra-high volume at every step, while downtrends only require average volume.
- Rising volume is only bullish; falling prices on rising volume indicate a 'trap down.'
- Volume should rise on moves in the trend direction (up or down) and fall on pullbacks.
- Markets fall faster than they rise because falling requires no institutional volume due to gravity.
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