A trader explains a single framework using the previous session's volume profile to find fair price. If today opens inside that range, trade the edges. If outside, wait for a retest and enter when buyers take control.
Some of the best traders in the world trade exactly this simple trading model that follows the money with surgical precision. Here's how it works. Step 1: Take the volume profile of the last cash session. This tells you where most money was traded and what the market ultimately agreed was the fair price. Step 2: Look at where we open today. If we open inside of the previous value area, it means that the market still agrees we are at a fair price. In this case, we'll trade range-bound. Every time price goes out of the value area, look for sellers being absorbed on the bottom and buyers taking control with high volume. That's your trigger to long till the other side. If instead the session opens outside, it means that markets have shifted valuation and we are likely to engage in price discovery. So wait for a test of the value area high and sellers exhausting. When buyers take control, that's your trigger to long today's session. And if you want a full guide to this model, comment volume and I'll send it over. And even if a lot of traders don't know this,
