My take on price and volume
divergence. Ideally, the price should move higher with an increase in volume
, which shows that more buyers are pushing the price higher and this is a perfect scenario for the price to continuously rise higher. But, when the price continues moving higher while volume
is drying, it shows that buyers aren't interested to push the prices higher. This scenario makes it easier for sellers to step in and increase the supply to drag the prices lower. Such analysis should be supported by price analysis to improve the probability. Also, the news would be a great catalyst. Currently, EURUSD
has rallied continuously for quite long and a correction might take place. This post is for educational purposes. If you have any query, comment below and I will respond to it. Also, if you liked my analysis then simply click the like button
Thank you and grateful for every one
of you! Wishing everyone a happy new year as well as a profitable trading year!