easy · Volume Price Analysis wyckoff-laws
According to Wyckoff's 'Law of Cause and Effect', how is the potential magnitude of a price trend estimated?
- The trend will always travel exactly twice the measured distance of the previous impulse swing move on the chart.
- The speed at which the initial breakout candle clears the trading range determines exactly how far the move travels.
- The volume recorded on the single final climax candle alone is treated as the sole predictor of the new trend's distance.
- The depth and duration of the preceding consolidation phase determines the strength and length of the subsequent move.
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