medium · Volume Price Analysis wyckoff-laws

During a healthy downtrend, the market produces a series of wide-spread bearish candles.

What volume behavior would validate this trend according to VPA principles?

  1. Volume should also peak sharply only on the small pullbacks against the trend.
  2. Volume should stay roughly constant no matter how wide the daily price spread becomes.
  3. Volume should be rising on the down moves, showing that effort is matching the bearish result.
  4. Volume should decline noticeably as prices fall, which indicates that selling interest is fading quickly.

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