medium · Volume Price Analysis validation
A currency pair rallies 50 pips on a news release, but the move is accompanied by tick volume that is only 50% of the 20-bar average.
What is the most likely outcome?
- A continuation of the move as the news has been fully digested.
- The market will enter a 'price waterfall' in the direction of the move.
- A period of low-volatility sideways trading.
- A reversal of the move as it was a 'trap up' by insiders.
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