A trader explains how to spot when a stock's price dips below its normal trading range on low volume, signaling weak selling pressure. When price bounces back up with a volume spike, it's an
These are traders who talk about beating the banks, and they're traders who have proven it in a verified live competition. And here's what the second group actually does. Step 1: Draw the volume profile of the session and find the value area. Step 2: Wait for price to dip below the value area. Watch the volume bars. If volume is declining on that move down and you see absorption, the money is not following the price lower. Step 3: As soon as price closes back inside the value area and volume picks up, the auction failed. The party is still in the range. That is your long. Stop goes below the low. Target is the value area high and potentially beyond.
