medium · Volume Profile Analysis trading-strategies
Price probes 1.3615 briefly with a 3-tick wick and no follow-through, leaving what is structurally defined as a 'Failed Auction'. Current price is 1.3605.
How should a long trade with a 10-pip target (1.3615) be adjusted?
- Extend the target to 1.3618 (3 pips beyond the failed auction) to capture the magnet effect.
- Short at 1.3615 expecting the failure to hold as absolute resistance.
- Close the long now; the failed auction at 1.3615 indicates buyers have exhausted their interest.
- Place a stop-loss at 1.3614 to protect profits.
Sign up free to see the explanation and track your rank →
More Volume Profile Analysis trading-strategies practice
- Where is the most logical place for your protective stop-loss?
- Based on the concept of 'naked POC decay' and magnetic pull, what is the most disciplined
- What is the most defensible stop-loss placement for a short entry based on this rejection?
- How should a trader manage counter-trend resistance levels in this environment?
- If the first target is an HVN at $1.37500, what is the Reward-to-Risk (R:R) ratio of this
- What is the primary risk of using a 'fade' strategy at the VAH or VAL during a balanced se
- From a profile structure perspective, where is the most logical location to trail the stop
- What does the relationship between the session POC (5,602) and the prior-day POC (5,610) i