- Price accelerates higher on increased volume and puts in a top
- Price corrects and advance but fails to take out the previous top even if volume increases. (The forming of a Triangle)
- Price finds support above previous low and makes a final attempt to continue higher, mobilizing the late bulls but fails.
- Price breaks below the trendline that makes up the lower end of the formed Triangle. Sell.
- Price comes back to the breakout level on decreased volume but fails to breach it and continues lower.
- As volumes keeps falling with price, dip buyers will wait to see volume pick up and go long when price breaks a descending trendline. They will then wait for another spike and a chance to sell as in 4).
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