Volume Price Analysis

In this article we are going to learn about VPA i.e. Volume Price Analysis.

Table of Contents

Volume Price Analysis – 7 key elements

VPA-7-key-elements

Volume Price Analysis – 7 key elements

This is same as Anatomy of a candlestick but only difference “The body” is called “The Spread”.
In any candle, there are Seven Key Elements.
1. The Open,
2. High,
3. Low and
4. Close,
5. the Upper Wick and
6. Lower Wick and
7. The Spread.
Whilst each of these plays a part in defining the price action within the time frame under consideration,
It is the wicks and the spread which are the most revealing in terms of market sentiment, when validated with volume.

Price	Spread	Volume	Behavior
Rising	Increasing	Rising	Normal
Falling	Increasing	Rising	Normal
Rising	Increasing	Fading	Abnormal
Falling	Increasing	Fading	Abnormal

That's it for Volume in this article will explore more taking this further in the next article i.e. The Different Phases of Market.