hard · Volume Spread Analysis
What is the 'Negative Response to a Positive Signal', and how does it function as a trade trigger?
- It refers to the immediate price drop that follows a 'Buying Climax', acting as a short trigger.
- It occurs when a bullish signal, like a test, fails to produce an up-move within $2 to 3 bars, revealing underlying weakness.
- It is a psychological state where a trader refuses to take a valid signal due to fear, necessitating a mechanical checklist.
- It is the process of prices falling on low volume, which is a 'negative' price move that is actually 'positive' for the trend.
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