(A) I see a lower high, more VAD, near a level, more time chop relative to surrounding bars (was moving fast, was only 20 seconds for this bar), and a cluster has formed. Is this a proper #2 setup?
(B/D) I see a higher high with less VAD, no time chop, no cluster and near a level. This seems like a tight chopping market, so can I consider this higher high with less VAD a fake breakout? It closed 2 bars above the previous high but less VAD and turned around, proper #4 setup?
© Is this hidden divergence good for #3 setup? Could we apply a #3 setup within the downtrend of the breakout of the #4 setup? And would being at 1.0 Deviation level change how we would approach it?
Please correct me if I’m wrong, and your help is kindly appreciated.
