medium · Volume Price Analysis validation
Two consecutive up bars in a rally have nearly identical wide spreads and nearly identical strong closes near their highs. Bar A's volume is well above the recent average; Bar B's volume is sharply below it. A trader insists both bars are equally valid because their price action is visually identical.
What is the decisive Coulling distinction?
- Both bars are fully equally valid: in volume-price analysis, identical price closes near the high always carry identical meaning, and volume merely grades relative strength, never validity itself
- Bar B is actually the stronger of the two bars overall, since achieving the same wide-spread bullish result on far less volume clearly demonstrates more efficient, less resisted buying pressure entering
- Bar A is validated because result is matched by proportional effort, whereas Bar B is anomalous — an identical result on far less effort exposes a lack of genuine buying despite the bullish appearance
- Bar A is the true anomaly here because heavy volume flowing into an active rally signals distribution by smart money, while Bar B's much lower volume simply confirms the path of least resistance stays upward
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