medium · Volume Price Analysis support-resistance
An ES E-mini trader sees a breakout above 4500 on high volume. The price pulls back and 'kisses' the 4500 level with a doji on volume that is 20% of the daily average. This 'kiss' should be viewed as:
- A high-conviction long entry signal, as the low volume verifies that the 'sell-side' liquidity has been completely removed.
- A sign to stay on the sidelines because a doji means the market is in 'indecision mode'.
- A 'Short Squeeze' where insiders are tempting traders to sell before they push the market to new highs.
- A bearish 'Topping Out' signal because the price failed to move higher after the breakout.
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