Last week Hawkeye showed no-demand volume, the first sign of distribution in an uptrend. Since then the market price profile has confirmed this setup with a trend pause and no-demand volume. This is a classic set up working through. Today let's looks at how low volume can prefigure an accumulation phase.
Daily Dollar Index (DX) Chart
The US Dollar Index has been in downtrend for some weeks but we are at a pivotal point on the daily chart. Look at where the great short came in on 14 February (indicated by the red arrow) and is showing 80+ pips. However, look at the low volume under the cyan arrow. Remember this is the first sign in your forensic analysis that the market should be commencing its accumulation phase prior to uptrend. So, if you are short pull your stops in.
Note: the red and cyan arrows are placed for illustration only, and are not part of the software.
If the close by the end of week is under the dotted line on increasing volume all bets are off and the downtrend will continue.