easy · Volume Spread Analysis wyckoff-phases-schematics

How does the 'herd instinct' affect price action during a selling climax?

  1. The herd panics and sells on extremely bad news, providing liquidity for professionals
  2. The herd buys aggressively at new highs, mistakenly believing the bottom is in
  3. The herd stays cautiously on the sidelines, waiting for a confirmed reversal before buying
  4. The herd panics and opens short positions near the low on thin volume, expecting more decline

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