Kardec Trader breaks down the first step traders miss: identifying whether the market is in balance or imbalance, then finding the precise swing point using volume profile to spot low-volume nodes. Set alerts slightly below the node, watch for aggressive large trades, then enter with your stop loss near that level and profit target toward the previous balance area.
The first step is understanding market state. We can only have two market state, balance, market price action going here. And we can have an imbalance market with this model we want to transact here. This is the market state and what we frame as the step one. Then we need the location. The location is exactly your swing point. This one that you need to analyze deeply. Because you need to understand if you want to jump in here, if you want to jump in here, if you want to jump on the train, sometimes from the lowest point, because momentum is so high that you can just say, okay, jump here. But I cover myself here. So it's still a good risk to reward rate. What you use to do this, you use profile and what you search is low volume node. What we can see here is that this is the low volume node. So what I do usually is I don't put a limit order. I put an alert a little bit below. Because when it arrives there, I want to see big trades. What you want to see is aggression. If you are seller, you want a big red ball. When you see a big red ball, can jump in and stop. Loss will go here and your target will be the previous balance area.
