medium · Volume Spread Analysis wyckoff-phases-schematics
What is the primary danger of buying a stock that is 'acting stronger' than the index without waiting for an individual VSA trigger?
- The stock may still need to perform a 'shake-out' or 'test' before the mark-up begins, leading to premature stops.
- The 'Path of Least Resistance' is always downward if the index is falling, regardless of the stock's strength.
- The stock will likely produce a 'Buying Climax' the moment you buy it, as retail FOMO is highest in strong stocks.
- You might be buying 'Bag Holding' which is a sign that the professionals are trapped and cannot sell.
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