medium · Volume Spread Analysis wyckoff-phases-schematics
A practitioner sees an 'Upthrust' on a Monday and then 'No Selling Pressure' (low-volume down-bar) on Tuesday.
What does the principle of 'Negative Response' say about shorting this setup?
- Be cautious; the lack of selling pressure on the response bar suggests the upthrust may be less significant.
- Short immediately, since the absence of selling pressure on a down-bar is a sign of weakness in this bear market.
- This qualifies as a two-bar bearish reversal pattern and is therefore a definitive sell trigger.
- Wait instead for genuine stopping volume to appear before confirming the downtrend is still intact.
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