medium · Volume Price Analysis wyckoff-laws
A market has been trading sideways in a distribution zone for several weeks. A wide-spread bearish candle suddenly closes significantly below the established support floor, accompanied by volume that is twice the twenty-bar average.
What is the most likely institutional intent?
- A successful test of supply within the existing range
- Validated breakout into the markdown phase
- Stopping volume indicating the start of a new accumulation phase
- A trap down move designed to lure retail sellers before a reversal
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