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?
- The stopping volume might be insufficient and the market could continue to fall.
- Buying now would tip off the market-makers to your newly opened position.
- Stopping volume is actually a bearish 'sell' signal per the classic Wyckoff method of tape.
- The 'true' bottom only occurs on quiet, low-volume 'no demand' bars, never stopping volume.
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