medium · Volume Profile Analysis trading-strategies
A composite (multi-week) profile shows a fat High-Volume Node at $98 and a thin Low-Volume Node at $103, with a second HVN at $107. Price is currently rotating around the $98 HVN. A trader sizes a long expecting a move toward $107.
Beyond simple support/resistance, what is the most defensible execution logic for the stop and target placement?
- Target $103 because the LVN is where the most volume has transacted and therefore where price is most likely to come to rest
- Place the stop just below the $98 HVN and target the far side of the $103 LVN, since price tends to move quickly across low-volume voids and decelerate into the next HVN at $107
- Place the stop at the $103 LVN and target $107, treating the LVN as firm support once price trades above it
- Avoid the trade entirely because rotation inside an HVN means the auction is balanced and offers no directional edge in either direction
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