medium · Volume Spread Analysis background-trend-context
According to the principle of 'The Negative Response to a Positive Signal,' what should a practitioner do if a 'Stopping Volume' bar appears but the price breaks below its low two bars later?
- Stay out or look to short, as the failure to respond to the strength indicates that supply is still overwhelming the professionals.
- Wait patiently for genuine 'No Selling Pressure' to confirm the professionals are merely 'testing' that stopping volume level once more.
- Buy right at the fresh new low, since rising 'Relative Volume' would simply mark out an even stronger 'Selling Climax' here.
- Increase the long position now, since the break below the low is really just a fresh 'Spring' pattern that will soon lead directly to a markup.
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