easy · Volume Price Analysis validation
A 'Bearish Engulfing' pattern is observed at a resistance level.
What VPA condition is required to consider this a high-probability reversal signal?
- The second (bearish) candle must have volume well above the average
- The pattern is only considered valid when plotted on a 1-minute tick chart timeframe
- The first candle in the pair must itself be a No Demand bar
- Volume across both candles in the pair should be declining rather than rising
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