medium · Volume Price Analysis validation
When constructing a dynamic trend channel, you notice that price advances occur on rising volume, while pullbacks occur on even higher volume.
What does this tell you about the trend?
- The trend is healthy overall because total volume keeps steadily rising
- The trend is under stress; selling pressure is stronger than the buying conviction
- The trend is entering Dow's classic 'Public Participation' stage of the cycle
- This is simply a successful, low-volume test of supply occurring on each and every pullback
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