VOLUME PROFILE: How to Trade Point of Control (POC)

0:02 Hello everyone, it's Dale here.

0:03 In this video, I'll show you how to use volume profile,

0:06 which is a powerful tool that reveals where the big players are trading.

0:11 And more importantly, we'll focus on the most critical level on the chart,

0:15 which is point of control.

0:16 And here is what you will learn.

0:18 You will learn what volume profile actually shows and how to read it.

0:22 You will learn why point of control is

0:25 the most powerful support and resistance level on your chart.

0:28 You will learn how to trade the point of control both the basic and more

0:34 advanced way and just as important when not to trade the point of control.

0:40 I'll walk you through real trades from my own account,

0:43 show you my exact strategy and also what to do

0:46 when the point of control fails because let's be honest,

0:50 it doesn't work every time.

0:51 And before we wrap up, I've got a small gift for you.

0:55 But you need to stay until the end.

0:57 And don't skip.

0:58 So, let's get to it.

1:00 And let's start with a little quiz so you guys know where you are at.

1:05 Okay.

1:06 So, take a look at this picture right here

1:09 on your screen and tell me where the price is going.

1:13 Is it going to go up or is the price continue to fall?

1:17 It's pretty hard, isn't it?

1:19 when you look just at this chart.

1:22 Pretty hard to tell.

1:23 Okay, let me help you a bit.

1:26 This is the same chart only what I've added is daily volume profiles.

1:32 Now, the same question.

1:33 Will the price go up or down?

1:36 Okay.

1:37 So, if you look at the volume profile, this one,

1:42 then right here, this is the point of control.

1:47 the price hit that point of control and made a reaction to it.

1:54 As you can see with a plain chart, plain price action chart,

1:59 it it was rather hard to guess where the price is going to go.

2:04 But with volume profile, it's actually very easy level to spot, right?

2:09 Because this is point of control.

2:11 And if you guys don't understand a thing

2:13 from what I'm showing you now, don't worry.

2:15 We'll get to it.

2:16 But you know this is just a little quiz

2:18 to get us started and to see where you are at.

2:22 Okay, second question and it's the same question as before.

2:26 Where is the price going to go?

2:29 Up or down?

2:31 Again, if we don't have the volume profile, it's quite hard to tell, right?

2:37 Just looking at the price.

2:39 But if we add the volume profile here,

2:42 then you can see that the price just hit the point of control which is in here.

2:49 The price just hit the point of control level.

2:54 So up we go.

2:56 Right?

2:56 This is a reaction to the point of control.

3:01 Now let's rewind a bit and let me start from the beginning.

3:04 Uh let me do a little introduction to what the volume profile is and then

3:08 we'll continue to you know the setups that I use to trade the point of control.

3:13 So volume profile is basically a histogram that shows volume at price.

3:19 So if you look at the volume profile, this is it.

3:24 And the wider the volume profile is.

3:27 For example, here the heavier volumes were traded at this price level.

3:32 Right?

3:32 This is called the point of control.

3:35 This level where the heaviest volumes were traded.

3:38 And essentially what the profile is showing you is

3:41 how the volumes were distributed throughout the whole day.

3:45 So heaviest volumes were in here.

3:47 Then there is area where there were some low volumes.

3:50 So at this price level, nobody was sort of interested in trading here.

3:55 Same goes for this area, right?

3:57 But this is the most important area because many

4:00 people were interested in trading at this uh price level.

4:04 All right?

4:04 So volume profile shows how volumes uh are distributed throughout the day.

4:09 If it's a daily profile, if it's a weekly profile,

4:13 then it will show how volumes are

4:16 distributed throughout uh throughout the whole week.

4:18 If it's a monthly profile then throughout the whole month

4:22 and as I was saying the point of control that's the place where

4:27 the heaviest volumes were traded this is the point of control and today

4:33 we are going to talk about that the volume profile can have

4:38 many shapes those are the four most basic ones but always

4:42 the most important place in each shape is the point of control right

4:48 So this is something called D-shaped profile because it has shape

4:52 of a letter D and right here this is its point of control.

4:57 If you look at the B-shaped profile then

4:59 the point of control is somewhere in here.

5:02 With a P-shaped profile you can see

5:04 that the heaviest volumes were traded in here.

5:07 So the point of control is in here.

5:09 And then with a thin profile sometimes it's a bit hard

5:12 to tell especially if there are a couple of volume clusters like here.

5:17 But I think looking at this profile that the point

5:20 of control the heaviest volumes were traded right here.

5:23 So in this case this is the point of control here.

5:27 Right?

5:28 So every volume profile has point of control no

5:31 matter what the shape of the volume profile is.

5:34 Right?

5:34 No matter how the volumes are distributed throughout the whole day and in each

5:39 of those shapes the point of control is the most important place.

5:45 So as I was saying point of control is the most important place on any chart.

5:49 The reason for that is that through volume profile you

5:53 basically track the big trading institutions right the big guys

5:57 the guys who move and manipulate the markets right and the point

6:02 of control the place where the heaviest volumes were traded.

6:05 This is basically the place where the big trading institutions were

6:09 most active where they placed the most of their trades, right?

6:14 So that's the most important place on the chart

6:17 and as you guys probably know institutions move the markets

6:22 and if you guys know where they are positioned then

6:26 I believe that you are ahead of 99% of retail traders.

6:29 It's kind of interesting because professional traders

6:32 so many of them almost majority of them I would say are using volume profile

6:38 at least as some addition to their trading strategy.

6:43 Institutional traders also use volume profile.

6:45 Like this is a standard tool of a professional trader.

6:48 But if you look at retail traders,

6:50 not so many of them actually use volume profile.

6:53 So what I'm trying to say is that even

6:56 if you just place the volume profile on your chart,

6:59 if you use simple daily profiles and you

7:02 just look at where the point of control is,

7:04 then if you do just this, you'll be still ahead of most retail traders, right?

7:09 Because you'll see something which they simply don't which

7:14 they can't see if they don't have the volume profile.

7:17 Now, in this video, we focus on the point of control.

7:20 And if you are an intraday trader,

7:22 then you'll probably be interested in a daily point of control,

7:25 you'll be trading that.

7:27 If you are long-term trader, then probably it's going to be uh

7:31 for example yearly or monthly point of control.

7:33 Let me actually show you.

7:34 Let me go to the chart.

7:36 All right.

7:36 So, uh this is a intraday chart, a 30 minute time frame.

7:40 If you look here, I have daily profiles, right?

7:43 Every day one profile and this is the daily point of control in here.

7:49 Then there's daily point of control in here.

7:52 Then there's daily point of control in here.

7:54 And if you're a day trader, you are going to be interested probably

7:59 mostly in the daily point of control, right?

8:01 The place where most volumes were traded in a given day, right?

8:06 But on the other hand, if you are for example long-term investor,

8:10 then you know you'll use workspace for example like this.

8:14 This is my swing trading workspace where I trade on the daily charts.

8:19 And in here I have yearly volume profiles.

8:22 Right?

8:23 So if I trade point of controls here then I'm interested

8:28 in this point of control which is point of control of the whole year.

8:33 I'll be interested in this point of control

8:36 because this is current year point of control.

8:39 Right?

8:39 So depending on the time frame you trade,

8:43 you should think of what kind of volume profile you actually want to trade.

8:46 Most of you are probably going to be intraday traders.

8:49 So we are going to focus mostly on trading daily point

8:54 of control which you can see right here on this intraday trading workspace.

8:58 Now the reason why I'm shooting this video and why point of control is

9:03 so important is that because it is a strong support and strong resistance level.

9:08 Right?

9:08 As I was saying, point of control is

9:12 a place where institutions placed most of their trading orders.

9:15 Right.

9:16 So if you look at this picture at this daily

9:20 volume profile and the point of control in here,

9:23 then what you basically want to do is

9:26 that if price revisits this place in the future,

9:29 makes a pull back to this place in the future

9:31 to this level to the point of control,

9:33 then the institutional traders who are active in here,

9:36 who created this point of control, will become active again.

9:40 They'll defend this place and they're likely to push the price up from here.

9:45 This is a long trade scenario.

9:48 Long trade scenario would look like this, right?

9:51 Pull back from below the point of control and then you go short from the level.

9:57 So basically the logic behind what I'm going to show you is institutions

10:02 defending the place where they were active before which is the point of control.

10:07 Okay.

10:07 So let me show you long trade scenario.

10:11 Let's take a look at this volume profile.

10:13 It has a very nicely visible point of control which is right here at this level.

10:19 That's the point of control.

10:20 Let me draw a line here.

10:22 The price went up from this point of control made

10:26 a pullback to it and then the buyers who are active here

10:30 those institutions started to buy aggressively defend the long positions which

10:35 they placed in here and result is that the price went up.

10:41 All right.

10:42 So that's the long trade scenario.

10:45 A short trade scenario is take a look at this profile

10:50 and the heaviest volumes in this profile right here.

10:54 This is where the volume profile is the widest and this is the point of control.

11:00 And take a look at this.

11:02 Price made a pull back to this level.

11:05 And then the sellers who are active here,

11:09 those institutional sellers started to sell

11:11 and that resulted in the price going down.

11:15 Right?

11:16 So this is the short trade scenario now.

11:19 Here is a guide how exactly to trade the point of control.

11:25 So the first step is identify the point of control.

11:29 That's easy.

11:30 That's where the volume profile is the widest, right?

11:33 So it's this level.

11:34 This is the point of control.

11:36 Then you want to wait for the price to move away from the point of control.

11:42 Let's say that it goes up and then you wait for a pullback.

11:48 This is the pullback.

11:49 And then you enter the trade at first touch.

11:53 That means you go long from here.

11:56 And you also want to trade only the first test.

11:59 Right?

12:00 That's at least how I trade this.

12:02 I only traded the first test because in my opinion

12:06 and experience uh they have higher probability of a successful reaction.

12:10 A short trade scenario would be again uh you mark

12:16 the point of control and if the price goes down

12:21 from the point of control you wait for the pullback

12:24 and when the price hits the point of control you go short.

12:28 Right?

12:29 This is the short trade scenario.

12:31 Now what I actually do and what I currently prefer is an alternative method.

12:38 It's very very similar only you don't place the trade entry

12:44 at the point of control but at the beginning of the volume zone.

12:50 Let me show you.

12:52 uh because the way I look at it is that the support or resistance is not just

12:57 the point of control line but it's the whole

13:01 heavy volume zone where the point of control is.

13:04 So in this case this would be a whole support or resistance zone.

13:09 Let me do a little drawing here.

13:11 This is the whole zone right?

13:14 Support or resistance zone.

13:15 Not just the point of control but the volumes around it too.

13:21 So if the price goes up from there, makes a pullback,

13:26 then I don't actually place my trade at the point of control line,

13:32 but I place my trade at the beginning of that heavy volume zone, which is here.

13:38 This is my long trade entry at this place.

13:42 Uh the reason is that I started to notice that I'm missing many trades.

13:46 Uh when I was trading from the point of control

13:50 from that level exactly I was missing a lot of trades.

13:54 Many times the price just reacted a little bit sooner.

13:57 So I started to place uh the level the entry level

14:01 at the beginning of that heavy volume zone and my results improved a lot.

14:06 So this is a little you know tweak to that strategy

14:10 that I'm currently using and it works nicely for me.

14:14 So this is long trade scenario.

14:16 Uh short trade scenario would be if the price

14:19 went down from that point of control made

14:22 a pullback then the short would be from here

14:25 from the lower border of that heavy volume zone.

14:29 Right?

14:29 So that would be the short.

14:31 All right let's get to some examples.

14:34 So first take a look at this volume profile.

14:37 It has point of control in here.

14:39 So let me draw a line there at the point of control.

14:44 And what you do is you wait for the price

14:48 to move away from that point of control.

14:50 In this case it goes downwards.

14:51 That means sellers are in control.

14:53 So it was sellers who were active

14:56 in here accumulating their short positions here.

14:59 Then those sellers push the price downwards.

15:02 And currently we have the information that at the point

15:05 of control there are strong sellers, right?

15:07 So we wait for the pullback.

15:09 When price hits the point of control for the first time,

15:13 you hit the short and that's it.

15:16 There's also one more here.

15:18 Take a look at this profile.

15:21 It has point of control right here.

15:25 The price moves away from the point of control, makes pullback to it.

15:31 And this is where you enter short.

15:34 Right?

15:35 So this is a short trade scenario.

15:38 Now here we have a long trade scenario.

15:42 Take a look at this daily volume profile.

15:46 The point of control is right here.

15:49 Draw the line and you need to see the price move away from the point of control.

15:56 make a pullback to it and when it hits your level then you go long from there.

16:03 All right.

16:04 So that's the long trade scenario.

16:07 From here you go long.

16:09 Now in this example take a look at this volume profile right here.

16:14 And the point of control is here.

16:17 Now let me show you something.

16:20 If you are trading from the point of control

16:24 like this, then this would be the pullback.

16:27 You'd be looking to go long from here.

16:30 But as you can see, the price missed that.

16:33 And this is actually what was happening to me so often.

16:36 And that's why I started to trade from the beginning of the heavy volume zone.

16:41 So the way I trade this is I place

16:44 the level a little bit higher to the beginning

16:47 of that heavy volume zone which would be somewhere

16:50 in here and actually go long from this place.

16:54 As you can see price hit that level and immediately went up.

16:59 Right?

16:59 So beginning of a heavy volume zone did the trick.

17:04 All right.

17:05 Now, this is the same chart only zoomed out a bit.

17:10 And I want you to take a look at this profile.

17:14 It has the point of control right here.

17:16 And if I extend the point of control like

17:21 this, then you can see that after the pullback,

17:25 this would be where I would be looking for long.

17:28 But yeah, the price just missed that.

17:30 It would be missed trading opportunity.

17:31 At that point, I would just discard the level.

17:35 But as you now know, the way I trade this is I place

17:38 the level at the beginning of a heavy volume zone.

17:40 So it would be somewhere in here because this would

17:44 be the area where the heaviest volumes were traded.

17:47 So I would place my entry somewhere in here and it would be a winner.

17:55 Right?

17:55 So this is exactly why I've altered the strategy

18:00 a bit so I don't miss trades like these.

18:04 All right.

18:04 Now, what I wanted to show you is when not

18:08 to trade the point of control because this is also very important

18:13 knowing when a strategy does work and when it does not

18:17 because there's no strategy that would work all the time, right?

18:21 So, when not to trade the point of control.

18:25 When you notice that the market is going

18:28 sideways in sideways price channel like here then you

18:32 don't want to trade the strategy of point

18:35 of control pullbacks uh that I just showed you.

18:39 The reason is that point of control in a rotation

18:43 is usually somewhere in a around the center of the rotation.

18:46 So this is the point of control of the first profile.

18:50 Second profiles point of controls is in here.

18:53 Then there's point of control in here.

18:56 The last profile has point of control in here.

18:59 So as you can see, it is somewhere around the center of that rotation channel.

19:06 Right?

19:07 And when the market is moving like this, what you want to do,

19:13 you want to trade from the borders of the rotation,

19:18 longs from here, shorts from here towards the center of the rotation.

19:23 And the center of the rotation,

19:25 the point of control is actually a nice place where to take your profit.

19:30 When you are going, for example, long from here,

19:33 then the point of control is good place uh for the take profit, right?

19:37 It's not a support or resistance when the market is rotating.

19:41 In this case, it works as sort of a magnet.

19:44 The price is moving around it and the point of control is around the center.

19:50 Right?

19:51 So, this is where not to trade the point of control strategy.

19:55 In this case, you want to use the point of control as a takerit.

19:59 Now, talking about take-profit,

20:00 we also need to cover takerit and stop-loss placement for our strategy.

20:05 Right?

20:05 So uh the rules are very simple.

20:08 Let me show you.

20:09 Take a look at this profile.

20:12 This is the point of control.

20:14 So again what you do according to the strategy

20:18 you print a line here on the chart,

20:22 wait for the pullback and when price hits the level then you go short.

20:28 Right now let's discuss the stop-loss placement first.

20:32 Stop loss needs to go in low volume

20:36 area where nobody really was interested in trading.

20:39 Right?

20:39 So take a look at the profile and the low volume area would be in here.

20:46 This red line, perfect spot for the stop loss, right?

20:52 Because this is the heavy volume zone and this zone is a resistance.

21:00 The whole zone is a resistance like this.

21:06 And you want to place the stop behind

21:08 that resistance because if the price goes past the resistance,

21:11 there's no way of telling where it will go next, right?

21:15 So that's where you want to cut your losses.

21:18 So remember, stop loss needs to go behind a heavy volume barrier like in here.

21:26 Now talking about the takeprofit,

21:28 you want to take the profit before the price reaches heavy volume zone.

21:32 So if you look at this profile right here,

21:37 this is a heavy volume zone and that heavy

21:41 volume zone could potentially represent a strong support, right?

21:46 This could represent a support.

21:49 And when you are short from here,

21:52 you don't really want the price to hit a support and ruin your trade, right?

21:57 So when the price hits the beginning of the support,

22:01 which is here, this is where you take your profit, right?

22:05 At the beginning of the heavy volume zone.

22:08 So again the rule for the stop loss is stop loss goes behind a barrier

22:14 behind a barrier and take profit goes

22:18 before a heavy volume barrier right simple rules.

22:22 Now let me give you one more example to demonstrate this.

22:28 So take a look at this profile right here.

22:32 Nice P-shaped profile with point of control in here.

22:36 If you are trading with uh the alternative strategy that I currently prefer,

22:40 then you want to place the long level a little bit above

22:44 the point of control at the place where the heavy volumes are beginning.

22:48 So this would be the long trade entry

22:52 and stop should go behind this heavy volume zone.

22:57 So this red line is stop loss because this is the low volume area, right?

23:04 So the stop loss goes behind heavy volume zone according to our rules.

23:09 And now when the price reacts to our long,

23:13 we need to look for place to quit the trade.

23:17 And if you look at this profile, nice D-shaped profile,

23:21 then it has heavy volume zone with point of control in here.

23:26 The beginning of this heavy volume zone is right here.

23:31 And there's a chance that the price will react to it like this.

23:38 You don't want that when you are long, right?

23:42 So that's why you quit your trade in here when the price reaches

23:46 this barrier because the risk is that it will react to the barrier.

23:51 In this case, it did not react, but it could have.

23:54 And that's why you put the trade in here.

23:57 Right now, let me demonstrate this on a couple of more trades.

24:00 Those are real trades which I publish

24:03 for members of my trading course every day.

24:05 Those levels that I publish for them are published

24:08 in advance so everybody can trade them with me.

24:11 So let me now show you a couple of them

24:14 to demonstrate how we uh trade the point of control.

24:17 So this is a recent trade we took on the ENQ.

24:20 Um take a look at this profile here.

24:23 The point of control was right here and our level

24:28 where we went long from was this line.

24:31 The market opened with a gap.

24:34 Then the price went up from that point of control, returned back.

24:39 It was rather quick and from there reacted.

24:43 We went long here and the price went up.

24:49 The stop-loss placement regarding to the rules which I showed

24:52 you uh should be in here in this low volume area.

24:55 But what I've done instead, I placed it a little bit lower because I want

24:59 the trade to breathe and I placed it below this low.

25:04 So I placed the stop in here.

25:08 And regarding the takerit, if you look at this volume profile, this one,

25:13 this was the point of control, the place where the heaviest volumes were traded.

25:19 And this was where I took the takeprofit, right?

25:22 Because I didn't want to risk it.

25:24 I didn't want to risk that the price will react

25:26 to the point of control and go downwards again, right?

25:29 So that's why the take profit was in here.

25:31 As you can see, this is more or less riskreward ratio.

25:36 one trade.

25:37 My rule for this is that I want to trade at least with risk reorder ratio one.

25:44 All right, that's the minimum.

25:46 So this was risk reorder ratio one trade and yeah, this is how it went.

25:51 Uh let me show you one more.

25:54 This is a trade which I took recently on the US dollar Japanese yen.

25:58 This is a 30 minutes chart daily profiles.

26:01 And if you look at this profile,

26:04 then you know there's a point of control that stands out very nicely.

26:07 This is the point of control.

26:09 And again, I like to trade from the beginning

26:12 of that heavy volume zone where the point of control was formed.

26:16 So it was this level.

26:18 The price moved away from that point of control,

26:22 made a pullback and this is where the price hit that level.

26:27 And at first touch, this is uh where I went short.

26:32 The stop loss for this trade was in a low volume area.

26:38 It was in here.

26:40 And the takerit was based on heavy volume zone standing

26:44 in the way and it was this heavy volume zone.

26:49 So that's why the takerit was in here.

26:53 It was a trade with positive risk-to-reward ratio.

26:57 So, it was quite a good trade.

27:01 Okay, last one, last example.

27:03 This is US dollar, Canadian dollar.

27:06 And take a look at this profile here.

27:09 This is where the heaviest volumes and the point of control was.

27:14 I was trading from the beginning of that heavy volume zone.

27:18 So, this was my trade entry.

27:21 Went short from there.

27:22 My stop was in here.

27:25 If I extend this line, you can see that it was behind this heavy volume zone.

27:32 So, behind this barrier.

27:34 And regarding the takerit,

27:36 I actually didn't have a heavy volume zone standing in the way.

27:40 So, I was looking for some different barrier

27:42 that would stand in the way of this trade.

27:45 And uh there was a weekly VW up here.

27:47 That's the blue line.

27:49 So, I quit the trade when the price hit the weekly VWAP.

27:54 By the way, VWAP is also a good place for uh taking profits like this.

28:00 But, uh that's another topic for another video.

28:03 Uh this is how the trade went.

28:05 This is where I took the profit.

28:07 If I only had the patience, I would actually be able to quit the trade

28:11 before it hit the first heavy volume barrier.

28:14 The price actually reached this place.

28:16 So, it would be like insanely nice trade if I managed to hold it that long.

28:21 But, you know, I'm not like that.

28:23 I probably wouldn't be able to hold that trade that long.

28:26 So, that's why I was searching for a closer place

28:29 where the quit the trade and it was the VWAP.

28:31 Right?

28:32 If I had the patience, then I would, you know,

28:35 follow the rules and just quit the trade when

28:38 it hit the heavy volume zone in here for me.

28:41 That would be probably just, you know, too much to handle.

28:45 Anyways, as I was saying,

28:47 those levels are levels which are every day in the members area.

28:50 I do updates every day and all the members have access

28:54 to them and they know where I will be trading that day.

28:58 Uh I give them the levels in advance.

29:00 So they have hours and hours,

29:02 sometimes even days before the level which I marked for them to trade

29:06 gets hit and before you know they can trade it with me.

29:10 And if you guys want to join us

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29:37 then go for the volume profile pack which includes the volume profile course.

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29:48 for various trading platforms like Ninja Trader, Metatrader or Trading View.

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30:14 You can book a call with us and uh we'll explain the service

30:18 and then you can decide whether or not uh this is right for you.

30:23 But let's now go back uh to the presentation because there is

30:26 something very important which I wanted to show you and that important thing

30:31 is what to do when the point of control fails because so

30:35 far I've been showing you nice scenarios and nice traits where the point

30:39 of control worked like a charm right but let's be real it

30:44 doesn't work like a charm all the time so um if point

30:48 of control fails that means that the there is a change of sentiment

30:53 And what you can do is you can take a reversal trade.

30:58 Reversal trade is that you trade the same

31:01 point of control again but from the other side.

31:04 Let me show you.

31:05 It will be easier if I do a little drawing here.

31:09 Um take a look at this profile.

31:13 Nice D-shaped profile, right?

31:14 The price moves away from that point of control.

31:19 That's the point of control line.

31:22 moves away from it, hits the point of control

31:26 in here and this is where you go short.

31:30 Right?

31:30 As you can see, it is a losing trade.

31:34 So, the point of control failed.

31:36 The price shot past that level.

31:38 Now, what comes into play is the reversal trade.

31:42 You extend this line a bit.

31:45 Wait for the pullback and at the same level, the same point of control,

31:51 you enter a reversal trade, which in this case is a long.

31:57 That's the reversal trade.

31:58 You would be surprised how often this works and how

32:03 often this reacts to the pip to the point of control.

32:07 Right?

32:07 So what I'm always saying to my students is point

32:10 of control just by itself is very very strong level.

32:14 If the price doesn't respect it and just shoots past it,

32:19 it is a very very important information.

32:21 It doesn't really mean that the point of control was a bad level to trade.

32:26 It simply means that buyers are stronger.

32:29 They pushed through and that the sentiment changed and we need to adapt.

32:34 Right?

32:35 So that's why you wait for the pullback and very

32:39 very often the market gives you the chance to enter

32:42 at that level again right very very often there is that pullback

32:47 and this is the reversal right if you previously went short

32:52 took a loss then reversal would be taking a long

32:56 from the same level from the same point of control let

33:00 me give you one more example of this take a look

33:04 at this profile Here this is the point of control, right?

33:10 Price moves away from the point of control,

33:13 makes a pullback, you go long and take a loss.

33:17 The price shoots past the level with no reaction at all.

33:21 So what you do is you wait for the pullback and when

33:25 the market gives you a chance to jump in a new short from here,

33:30 then you should do it.

33:32 As you can see, this would be just the perfect chart, right?

33:37 So, this is the reversal trade.

33:40 Ideal scenario is when the price shoots past the point

33:44 of control very very quickly with no reaction at all.

33:48 Even you know could be for example during macronuse.

33:52 It's completely fine if it shoots past your level in macron right.

33:57 So, this is the point of control.

33:59 The price shoots past it.

34:02 ideal scenario that you know this is aggressive candle huge

34:06 candle could be macronuous candle that's fine if there's no

34:11 reaction at all that's perfect scenario for the reversal right

34:16 now let's do a very very brief summary of uh

34:19 what we talked about today right so point of control

34:23 you should remember that it's the most important place

34:26 on the chart because it shows where institutions are positioned Because

34:31 of this, it works as a strong support and resistance zone.

34:35 And the way to trade this is you

34:38 want to trade pullbacks to the point of control.

34:41 This is a long trade scenario pullback.

34:44 This is a short trade scenario pullback.

34:47 Next thing to remember is that you shouldn't

34:51 trade the point of control when the market

34:54 is in rotation because in this case the point of control works as a magnet,

34:59 not as a support and resistance.

35:02 And last but not least, if point of control fails,

35:06 then you take a reversal trade, right?

35:09 So if this is the point of control, price goes up,

35:14 makes a pullback, you go long, but the price continues to go down.

35:21 Then you wait for a pullback and go short from there.

35:28 This is the reversal.

35:30 All right, guys.

35:31 So that's about it.

35:33 And here is a little gift as a thank you for staying until the end of the video.

35:39 Uh this is my bestselling book, Volume Profile: The Insiders Guide to Trading.

35:43 And uh I'm giving away free physical copies, and I'll even cover the shipping.

35:49 It's a gift from me to you for staying until the end.

35:52 I'll keep sending the books until they run out of stock.

35:56 And if you are in the US, just click the link below,

35:59 fill out the form, and I'll send it to you.

36:02 No strings attached.

36:03 Just enjoy the book and let me know how you like it.

36:07 All right, so that's about that.

36:09 Thanks for watching the video.

36:11 Thanks for sticking until the end and I'll

36:13 be looking forward to seeing you next time.

36:15 Until then, happy trading.