A classic volume price analysis signal
A Classic Volume Price Analysis Signal
A classic volume price analysis (VPA) signal appeared on AUD/USD. The pair was in a clear downtrend. Downward momentum looked set to continue. This signal was hard to miss for VPA traders.
In Falling Markets
In falling markets, one of the great signals we always look for as forex volume traders is the candle highlighted on the chart, and it is often an excellent re-entry signal to any trend if you have missed an opportunity higher in the trend. And the signal is simple and clear. Price weakness as denoted with the deep wick to the upper body of the candle, but associated with high volume. The market has tried to rally on excellent volume but closed lower on the day.
Clearly, the market makers are selling into weakness, and therefore, we can expect the trend lower to continue. You can join me in my free forex webclass where I explain this and other principles of volume...