hard · Volume Price Analysis wyckoff-laws
Apply Wyckoff's Second Law to a scenario where a market consolidates in a 200-pip range for five months.
What does this indicate about the subsequent trend?
- Volume will naturally decline during the breakout because the cause was so extensive.
- The breakout will be volatile but short-lived as the market has exhausted its energy in the range.
- The market is likely to reverse immediately as long consolidation periods always lead to trend failure.
- The move (effect) will be proportionally larger and more sustained due to the long duration of the cause.
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