medium · Volume Profile Analysis trading-strategies
A volume profile trader enters long at the Value Area Low (VAL) at 5480 with a stop below the prior day's low at 5470. Price reaches the Value Area High (VAH) at 5520. The trader is considering stop management.
From a profile structure perspective, where is the most logical location to trail the stop once price has accepted above the prior session's POC at 5500?
- Trail the stop to just below the prior session's POC at 5498 — a close below the POC would signal the bullish thesis has weakened
- Move the stop to breakeven at 5480, the most conservative action available once any open profit exists in the trade
- Move the stop directly up to the VAH target at 5520 — once price simply reaches the VAH the long trade is considered complete
- Keep the stop fixed at 5470 no matter what price does — stops should never be moved at all until the profit target is finally reached
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