medium · Volume Price Analysis wyckoff-laws
How should a trader interpret a 'Failed Test of Demand' in a potential Distribution zone?
- The distribution phase has failed, and the market will immediately reverse to a markup.
- The insiders have decided to switch from selling to buying.
- Buying interest still remains, and insiders must continue selling before a markdown.
- The market is entering a state of equilibrium with no further moves possible.
Sign up free to see the explanation and track your rank →
More Volume Price Analysis wyckoff-laws practice
- What is the confidence level for a short entry?
- Which phase of the Wyckoff cycle follows 'Accumulation' and is confirmed by a high-volume
- What does the volume on the rallies indicate?
- What is the Wyckoff interpretation?
- A trader is analyzing a potential 'Triple Top'. Peak 1: high… — What does this progression
- Why do markets typically fall faster than they rise, and how is this reflected in the VPA
- A stock has declined from 80 to 60. At 60, you see a series… — What is the 'Cause' in this
- If a currency pair consolidates in a 150-pip range for 8 weeks on a daily chart, what is t