easy · Volume Price Analysis wyckoff-laws
According to the Law of Cause and Effect, why might a three-month accumulation zone produce a larger trend than a three-day one?
- More time simply allows more retail traders to notice and enter into the developing move.
- The length of the cause (accumulation) directly determines the magnitude of the effect (trend).
- Longer accumulation zones always produce proportionally higher-volume breakouts once price emerges.
- It creates a more mathematically 'oversold' condition once plotted on standard technical oscillators.
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