hard · Volume Price Analysis climactic
An ES E-mini trader observes three consecutive 5-minute candles at the top of a rally. Candle 1: Wide spread, high vol. Candle 2: Narrower spread, higher vol. Candle 3: Very narrow spread, ultra-high vol.
What is this signature and what is the target for a short entry?
- Topping out volume; the arc suggests absorption by sellers. Place a short entry below the sequence low, targeting the nearest HTF support or congestion floor.
- Momentum ignition; the rising volume indicates that the trend is gaining strength, and the narrow spreads are just temporary price compression before a massive breakout.
- Accumulation churning; insiders are building new long positions at high prices to squeeze any remaining short sellers.
- A series of 'No Supply' bars; the lack of price progress downward proves the bulls are still in control, so hold long for the next leg up.
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