A simple diagram of the relationship between volume and price. You must understand the volume and price behavior of "easy movement". Various candlestick charts only define the appearance of a certain volume and price behavior. I hope you can understand the real meaning behind it and reduce the number of candlestick chart types to memorize. Just remember the volume and price behavior.

The core of the 5 types of volume and price behavior is the explanation of Wyckoff's principle of effort and result. The connotation of the upward trend and the downward trend is just the opposite. This chart is suitable for printing and placing it in front of your trading computer for review at any time to deepen your understanding.

Among the 5 types of volume and price behavior, one of them, easy movement, needs to be mentioned separately:

Easy movement: It means less effort (low trading volume) and big results (large price range). This phenomenon usually indicates that there is no large amount of buying and selling resistance in the market, allowing prices to fluctuate greatly with less trading volume.

Specifically:

Prices rise but volume is low: When prices rise rapidly on low volume, it may mean that there is less selling pressure in the market and buyers easily push prices up. This situation is sometimes seen as a signal that prices will rise further because there are fewer sellers in the market.

Price declines but volume is low: When prices fall quickly on low volume, it can mean that there is less buying pressure in the market and sellers are easily pushing prices down. This situation is sometimes seen as a signal that prices will fall further because there are fewer buyers in the market.

In Wyckoff theory, the phenomenon of easy movement is usually understood by analyzing the relationship between price and volume. One of the core concepts of Wyckoff theory is the "effort-result" law, which is the relationship between price changes (results) and volume changes (effort). When prices change significantly but volume is low, Wyckoff theory considers this to be a potential turning point or trend continuation signal because market forces are not encountering significant resistance when pushing price changes.

Below is a specific volume-price behavior chart:

Uptrend: Figure 1

Downtrend: Figure 2

#威科夫供需量价