easy · Volume Price Analysis

Why is it considered a mistake to automate Volume Price Analysis into a purely algorithmic system?

1. VPA interpretation is highly dependent on context and location within the cycle, which requires subjective human judgment.
2. Institutional participants and market makers avoid using computers, so algorithms cannot track their footprints.
3. VPA signals are only considered fully valid on the daily time frame, which makes the method too slow for algorithmic use.
4. Tick volume data generated in the Forex market is far too erratic and noisy for a computer system to calculate with real accuracy.

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