hard · 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.
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