hard · Volume Price Analysis validation

A down bar has a very wide spread and closes near its low, but the volume is conspicuously LOW — below the average of recent bars.

In Coulling's framework, why does this specific combination qualify as an anomaly rather than validation, and what does it most likely indicate?

  1. It is validation, not an anomaly: a wide down bar closing near its low simply confirms aggressive, effective selling, and low volume there just reflects an efficient move
  2. It is an anomaly because wide downward spread implies heavy selling effort, yet low volume contradicts that effort — signaling a lack of genuine supply and a likely move higher
  3. It is an anomaly because low volume on any down bar always means that buyers are completely absent, which confirms the decline is about to accelerate sharply toward new lows
  4. It is validation because low volume on a down bar shows sellers met no resistance whatsoever, proving that demand has already been completely and permanently exhausted at this current level

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

More Volume Price Analysis validation practice

KomFi Academy — Stop doomscrolling. Get KomFi.

Turn wasted screen time into verifiable competence.

KomFi Academy is a curated training platform with 75,000+ practice questions, 26,500+ flashcards, on-demand video lectures, podcasts, and 4K slide decks across the topics serious professionals study: GMAT, LSAT, MCAT, SAT, Investment Banking, Private Equity (LBOs & PE math), Private Credit, Quantitative Finance, Financial Accounting, Asset- Backed Securities, Volume Profile Analysis, Order Flow Trading, Market Microstructure, Volume Spread Analysis, Elliott Wave Theory, Volume-Price Analysis, and Public Offering Frameworks.

What's inside

Topics

View pricing · Read testimonials