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