medium · Volume Price Analysis support-resistance
During an intraday session, a currency pair breaks above a well-defined resistance ceiling at $1.2200. The breakout candle closes at $1.2235 but the tick volume is only 0.55x the 20-bar average.
What is the appropriate response for a VPA practitioner?
- Enter long immediately because the price has cleared the congestion zone with 'clear water' above.
- Identify this as an 'Upthrust' and immediately enter a short position with a stop at the breakout high.
- Enter long with a half-size position since the price close is valid even if the volume is low.
- Stand aside and wait for a reversal or a high-volume validation, as this is likely a fakeout.
Sign up free to see the explanation and track your rank →
More Volume Price Analysis support-resistance practice
- During an accumulation phase, the price dips below the estab… — What is the correct Wyckof
- What is the immediate trade implication?
- Following an accumulation phase, the market pushes below the… — What is this schematic eve
- A Volume at Price (VAP) histogram shows a large 'High Volume… — As the price approaches th
- What is the most likely outcome?
- If the price is at $158.00 and forms a shooting star on low volume, what is the expected o
- During a sideways consolidation, the price dips below the es… — What is the correct VPA te
- What is the Wyckoffian term for the first candle?