medium · Volume Spread Analysis wyckoff-phases-schematics
A stock experiences a Buying Climax and enters an automatic reaction.
If the price gaps down on the next open and volume is low, but the price continues to drift lower, what does this low volume signify?
- No real selling pressure exists here, suggesting the decline is merely a brief, temporary correction within the trend.
- A classic 'Spring' setup that will eventually lead to a powerful, sustained rally once supply is absorbed.
- A lack of professional support (no demand), as they are letting the market fall under its own weight.
- Accumulation by patient institutional traders who are quietly buying on the bid without moving price.
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