medium · Volume Price Analysis wyckoff-laws

How does this sequence describe the 'Law of Cause and Effect'?

1. The effect is the triple bottom, and the cause was the extended prior markdown decline that exhausted the sellers.
2. The cause is the combined dollar volume across all three tests, which mathematically converts into a predictable point-for-point rally.
3. The declining volume across the tests shows a weakening cause, so the subsequent effect will likely be only a small, short-lived rally.
4. The long duration and clear supply exhaustion of the triple bottom (cause) suggest a powerful and sustained markup (effect).

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