easy · Volume Price Analysis
An E-mini S&P 500 futures trader sees a wide-spread up candle on the 5-minute RTH open, but the volume is only 15,000 contracts against a typical average of 40,000.
What is the most prudent action?
- Check the 60-minute chart for a confirmation of the breakout.
- Enter short because a wide-spread up candle on low volume is an automatic sell signal.
- Stand aside and wait for the next candle, as this is likely a 'trap up' move.
- Enter long immediately to catch the 'opening drive' momentum.
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