The market is an auctioneer that raises price only while buyers keep bidding. Use a volume profile to find the fair value zone, then watch whether price holds above it or gets rejected back inside. If it holds, buyers accept the new level and you go long. If it drops back in, sellers trapped the buyers and you short.
Are we going higher or lower from here? I'll give you 3 seconds to decide. 1, 2, 3. Price is showing you a move up with candles closing higher, and most traders would call this bullish and start planning along. But price is not the full picture. Think of the market like an auction. The auctioneer keeps pushing price higher as long as people keep raising their hand, but the moment nobody raises their hand, the auction stops. So the real question is never which direction price moved, It's whether the market is accepting that new price or rejecting it. And the volume profile shows you this. Draw it over any range in price and it reveals where the real volume concentrated. That is what we call fair value. And if price pushes above fair value and holds, then the market is accepting a higher price. Combine this with no sellers stepping in and that is a long. But if price pushes above but then gets knocked right back inside, that means sellers stepped in and sold that premium pricing. And— Every buyer who chased the move is now trapped, and that close back inside isn't just a rejection, it's a signal that sellers are in control and your signal for a short. Save this video so you can study on your charts and see for yourself.
