In this video we explore another example of Wyckoff’s second law of cause and effect on a faster timeframe, yet the same principles apply. In this example we also show the characteristics of how the price action and volume during a congestion phase varies to that associated with climactic price action of accumulation and distribution phases where the price action is volatile and spiky. Again with cause and effect it is time which is important, and the greater the cause or time, then the greater the effect, or result.
So if the time is short, relative to the timeframe, then any resultant trend is unlikely to go far. If the time is long, relative to the timeframe, then the resultant trend is likely to run further.