medium · Volume Spread Analysis climaxes-tests-springs-upthrusts

Why is it important to never 'buy' on the first sign of 'stopping volume' without waiting for the market's response?

  1. The stopping volume might be insufficient and the market could continue to fall.
  2. Buying immediately would alert the market-makers to your position.
  3. Stopping volume is actually a 'sell' signal according to the Wyckoff method.
  4. The 'true' bottom only occurs on 'no demand' bars.

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