medium · Volume Price Analysis vpa-core
A trader is using a 233-tick chart for Crude Oil futures. They see a candle with a narrow spread and very low trade volume (contracts traded).
Why might this candle represent 'retail noise' rather than 'institutional absorption'?
- Low volume on any tick chart always signals an imminent trend reversal.
- Absorption requires high volume to prove insiders are matching every order.
- Institutions mainly trade during high-activity, time-based candle windows.
- Tick charts only count transactions, so trade volume data is irrelevant.
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