medium · Volume Price Analysis
A trader observes a potential Spring on a daily chart. The volume is 'Average'.
Is this a valid VPA signal?
- Yes, volume in VPA is relative; average volume on a Spring still signifies strength and can be validated by a subsequent low-volume test.
- Only if the average volume is precisely 1.5 times the preceding 5 bars.
- Yes, because volume doesn't matter on daily charts as much as it does on intraday tick charts.
- No, a Spring must always have 'Ultra-High' volume to show the 'effort' of the insiders.
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