hard · Volume Spread Analysis wyckoff-phases-schematics
An index has been in a steady decline for three weeks. On Monday, a wide-spread down-bar appears with volume reaching 2.4x the 20-day average, but the price closes in the upper 10% of the bar's range. On Tuesday and Wednesday, the market drifts sideways on average volume without making any upward progress.
What is the most professional interpretation of this sequence?
- The high volume on Monday confirms a Selling Climax, and the sideways drift is a standard re-accumulation phase that signals an immediate buy.
- The sideways movement on average volume confirms that the professionals have completely exited their short positions, making the trend neutral.
- Tuesday and Wednesday are 'No Selling Pressure' bars, which confirms that the mark-up phase has officially begun.
- The market is exhibiting a negative response to professional buying, suggesting that supply is still swamping demand.
Sign up free to see the explanation and track your rank →
More Volume Spread Analysis wyckoff-phases-schematics practice
- During a distribution phase, how do professionals use 'Good News' to facilitate their stra
- Why is the '90-Minute Reporting Delay' on the London Stock Exchange significant for VSA pr
- In the Accumulation phase, why does volume typically remain low on rallies within the trad
- In the 'Mushroom Top' distribution pattern, why do prices round over gradually rather than
- A stock gaps up $3.00 on a positive earnings report after a… — How should this scenario be
- A stock gaps up from $78 to $81.50 following a positive earn… — How should a practitioner
- What is the diagnosis?
- To follow the 'Checklist for Going Short,' when should the trader ideally execute the entr