Original subtitles

We will know that we are in a range within a zone of equilibrium when the

previous trend movement stops and the market generates some sideways movement.

This should be easy to see visually. If you cannot see that the market is

trending, you are most likely in a range.

The market is very unpredictable, and in many cases, determining the beginning

of the range can be complex.

Technically, we can say that we need at least four price turns between two

boundaries to determine range status.

In this example, we can distinguish between two ranges, a smaller one

the left and a larger one.

The key is to identify the first place turning points as these will lead to the

further development of the range.

Here is another example.

Once the first price rotations have been identified, we can start the manual

profile and run scenarios at their operating levels.

This rotation phase can occur over the course of one or more sessions or even

weeks. If it involves several sessions, it is best to run a volume profile

together to identify the trading zones globally.

In the context of a range, depending on where the price is in relation to the

analyzed equilibrium zone, we can identify two trading locations, trading

extremes and trading within.

When trading at the extremes, we look for price reversals at the limits of the

value area, the value area high and the value area low.

So we would look for a bearish reversal at the value area high to try and

position ourselves to sell and a bullish reversal at the value area low to try

and position ourselves to buy.

The low target would be to look for a move to the VPOC and generally to the

opposite extreme.

These are some of the examples we have looked at. At the top, we see two

examples using session profile and at the bottom, we see an example of where

have used a fixed range profile covering more price action.

When trading within the range, as long as we have enough room, i .e. the width

of the range is relatively wide, we will mainly look at the borders of the value

area, the low volume nodes and the VPOCs.

The low volume nodes identify excellent areas where we can expect a sharp

reversal as an entry signal.

And as for the VWAP and VPOCs, we have already seen that they are levels that

determine the control of the market, so we will wait for the price to produce

the effective break above them.

and we will look for the first entry to test them.

This type of trade is limited to having previously seen a false break, a failed

attempt to leave the value area, commonly known as a false breakout or

This failed price discovery is important to identify as it provides a clearer

directional context.

Here are some of the previous examples.

After the failed discovery, the price recovers the value area and we would

activate the trade in reversal where we would look for the visit to the opposite

end of the value area of the profile.

This move to the opposite end can be exploited in several places.

Firstly, on the same false breakout.

Secondly, if it leaves us with a test within the limits of the value area.

And finally, on the VPOC, if there is sufficient distance.

And here is an example of trading inside the range at the VPOC.

It is important that there is enough space between the boundaries of the

area before evaluating the opportunity.

After the download move, the price re -enters the value area high with a lot

momentum and heads straight for the value area high of the profile.

There, the price reacts and moves down to the VPOC where buyers reappear to

create the bullish imbalance out of the range.

This is an example of a VPOC trade that could have been taken.

The reasoning is that the failed breakout at the bottom leaves a backdrop

underlying strength and suggests that a bullish imbalance could be imminent.