Here's a trade example from today in the GBP future (6B)
Firstly check out the daily chart. Notice we are in a tight balance area that starts after the buying climax on the 17th February. We are right in the middle of this balance area, so I have drawn a volume profile over all the bars since the 17th, to show me where the VPOC is of this range, as well as the Value area high and low. There's are the values I have
VAH - 1.6715
VPOC - 1.6682
VAL - 1.6638
Now have a look at the intraday chart. Notice yesterday (3rd March) we put in the daily VPOC at 1.6717.. Right in line with the VAH of the overall balance. This is all the confluence I need for a short entry. That coupled with the fact that we closed much lower yesterday, so I knew the 1.6715-17 short level would only be hit after a rally and potential exhaustion. This trade ran for 5-6R (I risk 10 ticks in GBP and it has run for over 55 ticks and is potentially still going) However I personally only took 4R on this trade, after all we are still in balance on the larger time frame, and it would be foolish to expect a trend down day.
PS, notice where the low of the day was put in (during the asian session) 1.6638, the value area low! It's also a High Volume Node on the daily chart shown by the green line
RS
Firstly check out the daily chart. Notice we are in a tight balance area that starts after the buying climax on the 17th February. We are right in the middle of this balance area, so I have drawn a volume profile over all the bars since the 17th, to show me where the VPOC is of this range, as well as the Value area high and low. There's are the values I have
VAH - 1.6715
VPOC - 1.6682
VAL - 1.6638
Now have a look at the intraday chart. Notice yesterday (3rd March) we put in the daily VPOC at 1.6717.. Right in line with the VAH of the overall balance. This is all the confluence I need for a short entry. That coupled with the fact that we closed much lower yesterday, so I knew the 1.6715-17 short level would only be hit after a rally and potential exhaustion. This trade ran for 5-6R (I risk 10 ticks in GBP and it has run for over 55 ticks and is potentially still going) However I personally only took 4R on this trade, after all we are still in balance on the larger time frame, and it would be foolish to expect a trend down day.
PS, notice where the low of the day was put in (during the asian session) 1.6638, the value area low! It's also a High Volume Node on the daily chart shown by the green line
RS
Trade ideas posted daily with a follow up each night. See post #1