medium · Volume Profile Analysis trading-strategies
What is the structural implication of 'Excess' on a TPO profile, and how does it inform the placement of a Stop-Loss order?
- Excess simply marks a 'High Volume Node' that will later go on to act as a powerful magnetic support or resistance level whenever price returns to it.
- Excess indicates 'unfinished business' that price must eventually revisit, so protective stops belong placed far away to dodge the structural magnet pull.
- Excess is just a retail-driven spike, so the protective stop-loss should rest right at the Point of Control while the trader awaits later institutional confirmation.
- Excess represents a completed auction and a 'true' extreme; a stop-loss should be placed just beyond the excess tail as it is unlikely to be tested soon.
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
- A trader identifies a rejection setup on EUR/USD. Price touc… — How should this trade be s
- A price probe at $1.3615 is followed by a sharp retreat, lea… — How should this 'Failed Au
- What structural landmark now serves as the day's primary protective stop for a short trade