Original subtitles

A very important use we can make of manual profiles on structures concerns

systems that do not generate a full false breakout at the ends before

out -of -range unbalance.

Here is an example of such a case.

It would also serve to highlight the previous problem of correctly

the structures, since the movements as a whole are quite erratic, both the

initial and the final development of the range.

As we can see, the Barrett imbalance movement is the result of several tests

the profile's value area high, which acts as a resistance and prevents the

from going higher.

In a large percentage of cases, we will see that this type of alternative

structures, which do not generate a lack of breakout of the total extremes, use

these levels of the value area to generate on them the trend movement that

take the price out of the range.

In this example, when the market tries to break the value area at the top and

fails, The reading we should make is that there is underlying weakness.

When the market tries to move in one direction and fails, it will most likely

move in the opposite direction.

Of course, we still have the problem of not knowing when this test could be the

origin of the start of the breakout, so trading may still be in doubt.

But with this new print, we may be closer to identifying it.

If we look at the general sentiment of this chart, The first thing we see is a

failure of structural weakness due to the price's inability to visit the top

the entire structure.

This should put us on alert.

In addition, we observe the false breakout of a previous relative high in

area where the trading level of the pivot and the value area high of the

converge. The market is then positioned below the VPOC of the structure, another

sign of weakness.

We already know that we can identify market control in the short term based

where the price is positioned relative to the VPOC, so a loss of this level

below would signal bearish control.

Finally, the volume also does not seem to indicate a declining pattern either.

On the contrary, a high and steady volume is observed, which is

of distributive structures.

In short, there are several signs of weakness in the market which, taken

together, are enough to start looking for short opportunities.

even without a complete false breakout of the extremes.

It will be a less confident opportunity, but if we can identify multiple

footprints in favor of this market sentiment, it may be interesting enough

try.

You may not be confident enough to enter the potential uptrend when it occurs,

but after the development of the sign of weakness that manages to break the

structure on the downside, according to all the traces we have analyzed, the

directional bias is on the bearish side.

and we should look for an opportunity to go short.

At this point, in addition to all the traces identified above, we have the

important one, which is the sign of weakness.

Although we have not seen a complete false breakout from the extreme of the

structure, everything analyzed is reliable enough to favor the bearish

and roadmap.

From there, we could expect a test above the low of the structure or the value

area low of the profile to look for an entry trigger.

We will discuss later which trading level to prioritize, the structure or

volume profile.