medium · Volume Price Analysis
Trader A takes a long position on a 'Spring' at support with 1.8× average volume and a close in the middle of the range. Trader B takes a long on a 'Spring' with 3.5× volume and a close at the very top of the range. Both set stops below the low.
Which position sizing better matches the VPA signature strength?
- Trader B is at higher risk because 3.5× volume is 'churning'
- Trader B should use a larger position size (e.g., 2R)
- Trader A should use a larger position size
- Both should use identical sizing because the pattern is the same
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