medium · Volume Price Analysis
You are monitoring a 5-minute ES E-mini chart. The market has been in a distribution range. A wide-spread down candle breaks below the floor of the range on volume of 65,000 contracts (average bar volume is 22,000).
What is the primary VPA rule for managing this breakout?
- Enter short as the breakout is validated by high volume.
- Wait for a 'No Demand' bar to confirm the breakdown.
- Avoid entry as the volume is 'climactic' and likely to reverse.
- Enter long as this is likely an 'Upthrust' after a trap.
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