easy · Volume Price Analysis
A trader sees a hammer candle with volume 3 times the average at the bottom of a sharp decline.
What is the most professional VPA response?
- Ignore the signal until the RSI shows an oversold reading.
- Wait for a low-volume test to confirm the selling is exhausted.
- Immediately enter a long position to catch the reversal.
- Sell more, as the high volume confirms the strength of the sellers.
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