medium · Volume Price Analysis wyckoff-laws
A stock has declined from 80 to 60. At 60, you see a series of narrow-spread down candles on very high volume. This is followed by a hammer on ultra-high volume and a successful low-volume test.
What is the 'Cause' in this scenario according to Wyckoff's Second Law?
- The 20-point decline from 80 to 60.
- The accumulation phase at the 60 level.
- The ultra-high volume spike on the hammer candle.
- The successful low-volume test of supply.
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