Original subtitles

Once the price leaves the equilibrium range, we would be in the context of a

trend. When a trend is identified, the trader should only trade in favor of the

trend and wait for the reversal to try to enter the market.

At some point, you can trade the reversal, but this type of trading

higher risk.

In a trending context, there are two places to trade depending on where the

price is, interacting with the value zone or away from it.

In a trade where the price is interacting with the value zone, what

previously is that the price has left the equilibrium zone and is in a process

of imbalance that we must analyze to confirm whether it is accepted or

If it is rejected, the price will return to the old value zone, but if it is

accepted, it will initiate a subsequent trend movement out of the range.

This acceptance or rejection will be verified in a subsequent test where we

for the price to make a relevant trading level, basically the extremes of the

value area.

And this is where the first trade appears, in the post -breakout test,

would apply the principle of continuation as the price interacts with

extremes of the profile.

For bullish continuations, we would look for a T on the value area high and for

bearish continuations on the value area low.

We will look at several examples of those already analyzed.

In this type of trading context, we also take into account the VPOC of the

range, which is the last trading level above which the retracement after the

break can be expected.

If this is far from the break, it is advisable to quarantine the scenario, as

the price will have re -entered the value area and will already have some

In this case, and according to the volume profile trading principles, the

reversal type of trade should be triggered.

Here we see two examples of testing on the VPOC followed by continuations in

favor of the imbalance.

This failed reversal principle is a hybrid between the continuation

and the reversal principle as it is the subsequent price reaction that

determines which strategy is ultimately applied.

And here we see the other variant of the failed reversal principle with the VPOC

test and confirmation of the reversal.

Once the price manages to position and hold outside of the value area, we will

determine that an imbalance has occurred, that such a move has not been

rejected, and therefore we will be in a position to look for an entry in favor

of that direction.

If we are in a potential bullish breakout, all the volumes seen below, as

as the previous area of equilibrium, can now be identified as a potential

accumulation.

As we know, the effect of an accumulation will be a bullish move and

where we want to be positioned.

Conversely, if we find ourselves in a situation of a possible bearish breakout

and the price is able to hold this area and not return to the previous

equilibrium area, we will be able to identify this process as distributive

it will be the moment to look for the trigger to enter into a selling position

in order to take advantage of the subsequent bearish trend movement.

Once the market has confirmed the effective break of the previous

area, it will initiate the trend movement.

At this point, we would have to work with the context away from the value

There may also be another case where we open a chart where the price is already

outside its last value area and is already looking for a new equilibrium

Here, we have not been able to see the origin of the break of this value area,

but the objective that the market is already in this trend context.

And in such a context, what we need to do now is wait for a corrective move to

take place before continuing in the direction of the trend imbalance.

The key would be to identify the possible areas where the price can be

to make such a corrective move.

If the first level is too close, it is likely that the price will look for the

next level to develop a retracement with some proportionality in relation to the

previous impulse.

There are many ways to do this. We can use the levels of the volume profile of

the previous session if we are trading intraday.

This will be the end of the value area and the VPOC on which we will first

the continuation trade.

We can also start a manual profile of the whole impulse and use the operative

levels of this profile.

So we should wait for the price to be above the end of the value area and

the VPOC.

Other levels to consider in this context are the VWAP, whether daily, weekly, or

monthly. We will always pay close attention to the location of the weekly

as it is particularly useful in these trend contexts to look for the end of

retracement and the beginning of a new impulse move.

Finally, it is interesting to identify the areas of low volume within the

context in which we are trading.

In this case, we can use different profiles, the composite to identify the

general context, the profile of the previous impulse, and the profile of the

previous sessions.

We already know how the price can interact with these low trading zones,

should always keep them in mind regardless of the type of profile we are

with. In all contexts, we will want to trade in favor of the more trading

the better.

As mentioned above, the areas where several trading levels converge are

recommended to look for entries, highlighting the combination of VPOC and