A London session trader explains how he uses volume distribution to find where most trading happens, then waits for a breakout and pullback into that zone before entering. He says this confirmation step signals a real move, not a false dip.
During the London session, usually in indices, you have mean reverting behavior. So it's less common that you will see a trend. One other model that I am using is the one that takes opportunity of when the market is deep discount based on the volume distribution and snaps back in. We are seeking for buy. We have a target. Why we are using this target? Because this target is where the maximum volume is transacted. Yeah. So there is interest. What I do in this area is that I don't take the first movement. I wait for the first breakout and use price action for this. Because I get clear market participants of what they want to do. I don't risk that this is only a retracement and then they collapse. I get a movement that is clear. When I get the first breakout and I'm back inside the balance, this probability is really high.
