All language subtitles for 3. Trend context

Once the price leaves the equilibrium
range, we would be in the context of a

trend. When a trend is identified, the
trader should only trade in favor of the

trend and wait for the reversal to try
to enter the market.

At some point, you can trade the
reversal, but this type of trading

higher risk.

In a trending context, there are two
places to trade depending on where the

price is, interacting with the value
zone or away from it.

In a trade where the price is
interacting with the value zone, what

previously is that the price has left
the equilibrium zone and is in a process

of imbalance that we must analyze to
confirm whether it is accepted or

If it is rejected, the price will return
to the old value zone, but if it is

accepted, it will initiate a subsequent
trend movement out of the range.

This acceptance or rejection will be
verified in a subsequent test where we

for the price to make a relevant trading
level, basically the extremes of the

value area.

And this is where the first trade
appears, in the post -breakout test,

would apply the principle of
continuation as the price interacts with

extremes of the profile.

For bullish continuations, we would look
for a T on the value area high and for

bearish continuations on the value area
low.

We will look at several examples of
those already analyzed.

In this type of trading context, we also
take into account the VPOC of the

range, which is the last trading level
above which the retracement after the

break can be expected.

If this is far from the break, it is
advisable to quarantine the scenario, as

the price will have re -entered the
value area and will already have some

In this case, and according to the
volume profile trading principles, the

reversal type of trade should be
triggered.

Here we see two examples of testing on
the VPOC followed by continuations in

favor of the imbalance.

This failed reversal principle is a
hybrid between the continuation

and the reversal principle as it is the
subsequent price reaction that

determines which strategy is ultimately
applied.

And here we see the other variant of the
failed reversal principle with the VPOC

test and confirmation of the reversal.

Once the price manages to position and
hold outside of the value area, we will

determine that an imbalance has
occurred, that such a move has not been

rejected, and therefore we will be in a
position to look for an entry in favor

of that direction.

If we are in a potential bullish
breakout, all the volumes seen below, as

as the previous area of equilibrium, can
now be identified as a potential

accumulation.

As we know, the effect of an
accumulation will be a bullish move and

where we want to be positioned.

Conversely, if we find ourselves in a
situation of a possible bearish breakout

and the price is able to hold this area
and not return to the previous

equilibrium area, we will be able to
identify this process as distributive

it will be the moment to look for the
trigger to enter into a selling position

in order to take advantage of the
subsequent bearish trend movement.

Once the market has confirmed the
effective break of the previous

area, it will initiate the trend
movement.

At this point, we would have to work
with the context away from the value

There may also be another case where we
open a chart where the price is already

outside its last value area and is
already looking for a new equilibrium

Here, we have not been able to see the
origin of the break of this value area,

but the objective that the market is
already in this trend context.

And in such a context, what we need to
do now is wait for a corrective move to

take place before continuing in the
direction of the trend imbalance.

The key would be to identify the
possible areas where the price can be

to make such a corrective move.

If the first level is too close, it is
likely that the price will look for the

next level to develop a retracement with
some proportionality in relation to the

previous impulse.

There are many ways to do this. We can
use the levels of the volume profile of

the previous session if we are trading
intraday.

This will be the end of the value area
and the VPOC on which we will first

the continuation trade.

We can also start a manual profile of
the whole impulse and use the operative

levels of this profile.

So we should wait for the price to be
above the end of the value area and

the VPOC.

Other levels to consider in this context
are the VWAP, whether daily, weekly, or

monthly. We will always pay close
attention to the location of the weekly

as it is particularly useful in these
trend contexts to look for the end of

retracement and the beginning of a new
impulse move.

Finally, it is interesting to identify
the areas of low volume within the

context in which we are trading.

In this case, we can use different
profiles, the composite to identify the

general context, the profile of the
previous impulse, and the profile of the

previous sessions.

We already know how the price can
interact with these low trading zones,

should always keep them in mind
regardless of the type of profile we are

with. In all contexts, we will want to
trade in favor of the more trading

the better.

As mentioned above, the areas where
several trading levels converge are

recommended to look for entries,
highlighting the combination of VPOC and