medium · Volume Price Analysis validation
A practitioner observes a wide-spread bearish candle on low volume following a period of sideways congestion.
What does the Law of Effort vs. Result suggest about this price action?
- The price action is validated because the market fell under its own weight.
- There is a significant divergence as the result vastly exceeds the effort applied.
- The effort is proportionate to the result because the wide spread met no real resistance.
- The lack of accompanying volume simply confirms that no genuine demand remains in the market.
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