hard · Volume Profile Analysis
In a trending market (Nifty 50), the Efficiency Ratio (ER) is 0.45, the ADX is 32, and value migration has been upward for 4 sessions. A trader identifies a Rejection setup at a prior session high.
According to the strategy-regime matching framework, how should this trade be handled?
- The trade should be taken only if the win rate is above 60%.
- The trade should be converted to a Trend setup by entering long at the rejection level.
- The trade should be avoided; in a trending regime, 'fades' of extremes are low-probability as levels are frequently blown out.
- The trade should be taken with full size; Rejection setups are primary in all market regimes.
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