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?
- 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
- 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
- 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
- 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
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