medium · Volume Price Analysis vpa-core
A trend on a 60-minute chart is bearish. On the 5-minute chart, you see a narrow-spread down candle on 2.5x average volume followed by a hammer on high volume.
What is the hierarchy-compliant action?
- Ignore the 5-minute signals and enter short because the 60-minute trend always takes precedence.
- Take a short-term counter-trend long, but set a tight target at the first 15-minute resistance level.
- Enter long with a target at the 60-minute trend origin, as the 5-minute signal marks a full trend reversal.
- Wait for the 5-minute chart to show a 'No Demand' bar before entering long.
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