Using Volume Profile to spot hidden Support and Resistance Zones.
When looking at the market profile remember that the low volume areas are Support and Resistance also. Had i closed at this point i would have booked.
When in profit this early and price hits a double bottom a REVERSE trade is Ideal to lock profits and position for further gains.
Note the Low Volume Profile areas as S/R from previous Day, when price approaches these areas on current low volume, you can get an explosive response as there is NO interest in this price. This area will be rejected very fast as it represents a WHOLSALE price zone. This makes it difficult for public to catch the bottom. Also price will break thru these area on high volume wide spread bars to cross the creak where there is little interest basically manipulation.
See low volume areas on Daily Volume Profile. Daily Lows rejecting the prior days Low volume zones in up trend.
Now see price reaction on 2 minute chart to these same areas 4/29.
4/28 on 5 minute Open rejecting a low zone from the 4/27 area.
Another great S/R area is the @ES Continuous Volume Profile, when the POC's and Hi/Lo Volume areas line up with the previous days these areas are great clues to Support/Resistance. Draw trend lines on chart to be aware of these areas prior to the open. Great for Globex Bounce trades and Ice Breaker S/R area and directional assistance.
