medium · Volume Price Analysis wyckoff-laws
A Falling Triangle pattern is forming. Each attempt to rally away from the flat support floor occurs on progressively lower tick volume.
How does VPA interpret this?
- As a sign of strength; since volume is low, sellers are clearly not interested in the rallies.
- As a neutral signal; triangles are always 50/50 regardless of the volume profile.
- As an accumulation phase where insiders are hiding their buying activity.
- As weakening demand; the buyers are exhausting, increasing the probability of a bearish breakout.
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