We are still having problems with blogger. Evidently they are undecided whether they will allow comments from all commentators or only people with a blogger account.
Hope they resolve it soon.
Viren drew my attention to a set-up he has been back testing with volume profile charts.
Have a look at this chart :
.
Let’s focus on today’s profile, the extreme right on the chart.
According to Viren’s set-up, if in a trending day the point of control closes near the extreme in a volume profile chart, then there are good chances of a reversal the next day.
If you look at the profile from today, we had a strong uptrend day and the point of control is at the top end of the range.The point of control represents the best value for the day, or the level at which buyers and sellers agree on value. In a strong uptrend, this only means that there were heavy sellers in the Bank Nifty at the top today.
We’ll put it to the test tomorrow.
As with all set-ups this one has also rules, and one of the rules is that the open the next day, should be within range.
So we wait for the open tomorrow and if we get an auction below 9556, then we short for 9458.
