medium · Volume Price Analysis wyckoff-laws
A stock is oscillating in a range between $22.00 and $25.00. You notice that every time the price approaches $22.00, the volume bars for down candles decrease in height. Up candles moving away from $22.00 show rising volume.
What is the Wyckoff interpretation?
- The market is in a distribution phase where insiders are quietly exiting their long positions.
- A bearish breakdown is imminent because the market keeps returning to the support floor.
- The market is in an accumulation phase where selling pressure is drying up at support.
- The market is overbought because the oscillation lacks the 'cause' for a breakout.
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