medium · Volume Price Analysis wyckoff-laws
A trader is analyzing a potential 'Triple Top'. Peak 1: high volume shooting star. Peak 2: average volume star. Peak 3: low volume star.
What does this progression suggest about the 'Cause and Effect' law?
- The effect will turn out bullish and break higher, since sellers are clearly not returning to the market
- The cause (distribution) is maturing and the effect (markdown) is likely to be significant
- The cause is really a 'Buying Climax' that should instead lead into a fresh markup campaign
- The cause is failing to build because volume keeps declining rather than rising into resistance
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?
- 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
- Which of Dow's 'Three Stages of a Trend' is characterized by public euphoria, late retail