medium · Volume Profile Analysis trading-strategies

A USD/CAD trade setup occurs at a weekly Point of Control (POC) of $1.3785. As price approaches the level, a 30-minute bar prints a high of $1.37865 with 2.6x average volume but closes at $1.37795, leaving a 7-pip upper wick.

What is the most defensible stop-loss placement for a short entry based on this rejection?

  1. Five pips below the bar close to minimize risk.
  2. Slightly above the bar high, near $1.37905.
  3. Above the session high, regardless of where it sits.
  4. At the weekly POC itself ($1.3785).

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