medium · Volume Price Analysis validation
A long-legged doji forms on ultra-low volume during a major news release.
How should a VPA practitioner classify this?
- As a 'No Demand' bar confirming that the previous trend will resume immediately.
- As a validated signal of extreme market indecision and an imminent reversal.
- As an anomaly and a 'stop-hunting' trap manufactured by insiders.
- As a sign of a 'liquid market' where price can move freely without needing transactions.
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