medium · Volume Price Analysis
A trader identifies a 'Head and Shoulders' pattern. VPA mastery requires looking at the volume during the formation of the 'Head' relative to the 'Left Shoulder'.
What is the standard bearish signature?
- The Head prints a marginally higher price peak on much higher volume
- Volume should peak decisively only on the Right Shoulder's final rally attempt
- The volume should remain roughly identical and unremarkable across all three price peaks
- The Head makes a higher price peak on lower volume than the Left Shoulder
Sign up free to see the explanation and track your rank →
More Volume Price Analysis practice
- A stock has been in a sustained uptrend for three weeks. A c… — How should this be interpr
- What is the specific VPA principle demonstrated here?
- During an accumulation phase, the price dips below the estab… — What is the correct Wyckof
- What is the most likely price behavior?
- What is the next step in the decision framework to confirm this is an entry opportunity?
- An up candle with a very narrow spread and very low volume a… — What does this specificall
- A practitioner is using a 233-tick chart for the ES E-mini.… — What does a 'low volume' ba
- A stock has reached the top of a distribution zone. A candle… — How should the practitione