easy · Volume Price Analysis
You are analyzing a Volume at Price (VAP) histogram. The current price is hovering at a level with a very short horizontal volume bar (a low-volume node), and the next major concentration of volume (high-volume node) is 5% higher.
Based on VPA principles, how should the current price behave?
- The Point of Control (POC) will shift to the current price level due to the lack of existing orders.
- The price will consolidate at the low-volume node to build the 'cause' for the next move.
- The price is likely to move quickly through the low-volume node toward the next area of dense activity.
- The low-volume node will act as a major reversal point because few transactions occurred there.
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