easy · Volume Price Analysis vpa-core
Why is it considered a mistake to automate Volume Price Analysis into a purely algorithmic system?
- VPA interpretation is highly dependent on context and location within the cycle, which requires subjective human judgment.
- Institutional participants and market makers avoid using computers, so algorithms cannot track their footprints.
- VPA signals are only considered fully valid on the daily time frame, which makes the method too slow for algorithmic use.
- Tick volume data generated in the Forex market is far too erratic and noisy for a computer system to calculate with real accuracy.
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