A trader explains why knowing if price goes up or down isn't enough. The real question: is the market accepting the new price or rejecting it? Watch the volume profile to find the fair value area, then see if price holds above it or retreats back inside.
Are we going up or down from here? 3 seconds to decide. 1, 2, 3. Price is showing you a move up, candles closing higher, and most traders will 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 and higher as long as people keep raising their hand, but the moment no one 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. The volume profile shows you this. Draw it over the move and it reveals where the real volume concentrated. That is fair value. If price pushes above fair value and holds, the market is accepting a higher price. No sellers are stepping in, and that is your long. But if price pushes above and then gets pulled right back inside, sellers defended that premium pricing, and every buyer who chased that move is now trapped. That close back inside is not just a rejection, It's the signal that the other side is in control. Same chart, completely different answer depending on what the volume tells you. If you want to learn more about volume profiles, I have a free course and a community. Comment join and I'll send you the link.
