hard · Volume Price Analysis vpa-core
On a daily chart a market shows three consecutive up-bars: bar 1 wide with rising volume, bar 2 wide with even higher volume, bar 3 wide-spread up but closing well off its high on volume HIGHER than both prior bars. Coulling would weigh this against the 'background.'
Which interpretation best integrates spread, volume, and close across the three bars?
- Bars 1-2 are demand confirming the move, but bar 3's higher volume with a poor (off-the-high) close is supply meeting demand — a topping-out warning where increased effort failed to produce a proportionate up-result
- All three bars show strong demand, because volume rose in each session, so this rising-volume sequence simply confirms an accelerating, healthy, well-supported uptrend, and no caution whatsoever is warranted
- Bar 3 is the strongest bar of the entire three-bar sequence, since it alone carries the highest volume yet recorded, so its off-the-high close is irrelevant noise and a larger up-bar should now be expected next session
- Bar 3 is simply a no-demand bar because its close is weak, signalling that buyers have vanished amid unusually thin participation on this particular session, and so the uptrend will now quietly stall out and reverse lower
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