medium · Volume Price Analysis
A 'Long-Legged Doji' forms on a 5-minute chart during a major news release. The volume is 30% of the average.
How should this be interpreted within the VPA framework?
- It is a 'No Supply' bar, indicating that the news failed to attract any real sellers.
- It is a reversal signal, implying the market has reached a point of absolute, lasting balance.
- It is a trap move where insiders are stop-hunting in both directions to clear the order book.
- It represents genuine indecision between bulls and bears as they digest the impact of the news.
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