medium · Volume Price Analysis climactic
A trader sees a 'Hanging Man' on a daily chart. They check the tick volume and find it is significantly below the 50-day average.
According to the 'Binary Question' of VPA, what is the conclusion?
- The signal is not validated by volume and should be treated with caution.
- The signal reflects a trap down move staged by market insiders.
- The signal is a No Demand bar confirming the trend has now ended.
- The signal is a bullish validation supporting a continuation of the trend.
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