medium · Volume Price Analysis vpa-core
You are monitoring a 60-minute chart (HTF) and a 15-minute chart (Trading TF). The HTF is in a strong downtrend with no signs of stopping volume. The Trading TF prints a high-volume hammer.
According to the Hierarchy Rule, how should you proceed?
- Immediately sell because the Trading TF hammer is a bearish anomaly in this context
- Wait for the 60-minute chart to also print a hammer before doing anything
- View the signal as a temporary pullback and only take short entries on the Trading TF
- Enter a long position as the Trading TF signal takes precedence for timing
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