medium · Volume Price Analysis wyckoff-laws

How does an 'engulfing bearish' candle relate to the start of a markdown when it appears at the end of a distribution phase?

  1. It indicates that a preceding 'No Supply' test at the range low has now failed outright.
  2. It shows that insiders are stop-hunting retail buyers just above the range ceiling.
  3. It signals that sellers have completely overwhelmed the previous session's buyers
  4. It is a neutral signal unless it is immediately followed by a bullish hammer candle.

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