medium · Volume Price Analysis
A trader is using a 233-tick chart for the ES E-mini. They notice that two consecutive candles both have 233 ticks, but Candle 1 has a trade volume of 1,200 contracts while Candle 2 has only $350.
What does this reveal?
- This is a genuine VPA anomaly since effort measured in ticks fails to match contracts traded.
- Candle 1 had significantly more institutional participation (larger orders) than Candle 2.
- The market is entering congestion, simply because trade volume is declining.
- Candle 2 was actually the more 'active' bar, since it needed less time to fully form.
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