medium · Volume Price Analysis testing

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?

  1. Trader B is at higher risk because 3.5× volume is 'churning'
  2. Trader B should use a larger position size (e.g., 2R)
  3. Trader A should use a larger position size
  4. Both should use identical sizing because the pattern is the same

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