medium · Volume Price Analysis
You are monitoring a 5-minute ES E-mini chart. The market makes three successive higher-highs. The volumes for these pushes are 100K, 70K, and 45K contracts respectively. On the third push, the Delta volume is +500 compared to +8,000 on the first push.
What is the trade implication?
- The Delta divergence is irrelevant because the price is still making higher highs, which is the only leading indicator.
- The market is becoming more efficient, requiring less volume to move the price higher as sellers give up.
- The trend is reaching exhaustion and a reversal is imminent as institutional buying pressure has evaporated.
- This is a bullish signal indicating a lack of supply, often called a 'No Supply' sequence.
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