medium · Volume Price Analysis testing

An Upthrust appears on a 5-minute chart of the ES E-mini. The trader notices that the Volume at Price (VAP) histogram shows a 'low-volume node' just above the resistance level.

How does this affect the signal?

  1. It suggests the Upthrust is actually a hidden accumulation signal in a very clever disguise here for insiders.
  2. It makes the Upthrust much less likely to fail, since no real resistance remains above the current price at all.
  3. It indicates that an aggressive, high-volume short squeeze is about to occur very soon, likely within the next few sessions.
  4. It confirms that the price was pushed into a 'vacuum' where no buyers exist, increasing the probability of a reversal.

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