hard · Volume Price Analysis
A 'Long-Legged Doji' appears on a 5-minute chart during a major news release. The volume bar is well below the 20-period average.
How should a VPA practitioner interpret this event?
- As a validated entry signal for a breakout once the high of the doji is breached.
- As a successful test of supply and demand, signaling the start of the next markup phase.
- As the ultimate signal of market indecision, suggesting a major trend reversal is imminent.
- As an insider 'stop-hunting' move designed to whip prices and trigger orders without genuine directional intent.
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