medium · Volume Spread Analysis wyckoff-phases-schematics
The parent index has been correcting for two weeks, dropping 6%. During this same period, a stock you are watching has traded sideways, staying within a 1% range on very low volume.
What VSA principle is being demonstrated?
- Relative Strength, indicating professional accumulation is supporting the stock against the market trend.
- No Demand, indicating the stock is so weak it cannot even rally when the market is neutral.
- Falling Pressure, suggesting the stock will collapse once the index stops falling.
- Market Rotation, as professionals are liquidating this stock to buy the index laggards.
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