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 selling pressure, suggesting that the decline is just a temporary correction.
- A 'Spring' setup that will eventually lead to a massive rally.
- A lack of professional support (no demand), as they are letting the market fall under its own weight.
- Accumulation by institutional traders who are buying on the bid.
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