medium · Volume Price Analysis vpa-core
A forex scalper uses a 5-minute chart for execution and a 60-minute chart for context. The 60-minute chart shows a clear 'No Supply' bar at a key support level. On the 5-minute chart, a wide-spread up candle breaks a minor resistance on high volume.
What is the conviction level for a long entry?
- Low conviction: the 5-minute chart is simply 'too fast' to reflect true institutional intent here.
- Moderate conviction: wait for the 60-minute chart to also independently confirm its own breakout before acting on it.
- Zero conviction: a 'No Supply' bar found right at support is actually a bullish signal, not bearish, within a downtrend.
- High conviction: The LTF breakout is validated by volume and aligns with the HTF successful test of supply.
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