hard · Volume Price Analysis Wyckoff's Laws & The Four Market Phases
A commodity completes what looks like a textbook accumulation range: a Selling Climax, an Automatic Rally, a Secondary Test on lower volume, and a Spring. However, the entire structure formed over just 4 trading days, compressed into a range only 1.5% wide, on volume that never exceeded the instrument's typical daily average.
What is the most important qualitative check the Law of Cause and Effect adds here, beyond simply confirming the sequence of named events occurred?
- It proves the structure must be entirely false, since genuine accumulation cannot complete in 4 days.
- It shows the unusually low volume automatically means the eventual markup will be unusually large.
- Matching the named event sequence is sufficient by itself, since scale plays no role in the law.
- It flags that this small, quiet cause can only support a proportionately smaller effect, in turn.