In this video we study some further simple examples of Wyckoff’s 3rd law and on three candles in particular. The first is at the bottom of a bearish trend where we see the highest volume of the session arrive. This is followed by an up candle on good volume, and finally our third candle which really sets the alarm bells ringing loud and clear as the trap is set and sprung. Traders fall into these traps all day long. They appear in all timeframes and often at session crossovers and also at and just before news releases. VPA is based on the fundamental principle of following the market makers as they buy and sell and in this example we see clearly as they set the trap.
Volume price analysis reveals the truth behind the price action, and never more so than in this video where it could not be clearer.