medium · Volume Spread Analysis wyckoff-phases-schematics

As a market transitions from distribution to markdown, how does the 'Path of Least Resistance' change?

  1. It stays upward until price eventually breaks below the widely watched 200-day moving average line
  2. It shifts upward because fresh short covering supplies new demand that ends up fueling the markdown
  3. It becomes neutral as strong holders and weak holders reach a rough equilibrium of trading volume
  4. It shifts downward because professional buying has decreased on up-moves and supply is increasing.

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