SOFI boxes strategy in action! feat. volume profile
Hi everyone!
Today we are analyzing
SOFI price movement.
As always, I am using my boxes strategy based on supply and demand.
BUT
In addition, I used volume profile for detailed context here.
A few words on volume profile:
It puts trade volume on vertical axes. So instead of volume per point in time metric, we observe volume per point in price. This way we can see at which price point the highest amount of volume had occured.
Let's implement it on ourSOFI chart.
Since February 2021 the highest volume has occured in 15.1 - 15.8 price range.
Red horizontal line at 15.45 is called Point of Control (POC). It is a highest volume node that has seen the most volume. Thus, that is a significant level of support/resistence.
Believe it or not, but I drew trendlines, boxes and indicated levels first. Only then I added Volume Profile starting from February, and its POC at 15.5 matched one of my box levels.
What does it tell us?
Plan:
Please let me know if this was helpful and if you want to see more analysis with volume profile.
Trade wisely and good luck!
-----------------------------------------------------------------------------------------------------------------
Disclaimer!!!
This is not financial advise.
Today we are analyzing
SOFI price movement.As always, I am using my boxes strategy based on supply and demand.
BUT
In addition, I used volume profile for detailed context here.
A few words on volume profile:
It puts trade volume on vertical axes. So instead of volume per point in time metric, we observe volume per point in price. This way we can see at which price point the highest amount of volume had occured.
Let's implement it on our
SOFI chart. Since February 2021 the highest volume has occured in 15.1 - 15.8 price range.
Red horizontal line at 15.45 is called Point of Control (POC). It is a highest volume node that has seen the most volume. Thus, that is a significant level of support/resistence.
Believe it or not, but I drew trendlines, boxes and indicated levels first. Only then I added Volume Profile starting from February, and its POC at 15.5 matched one of my box levels.
What does it tell us?
- Two indicators confirm that 15.5 is a significant level.
- We are at 19.3 now in a downward long-term trend near its top.
Plan:
- Look for a return to 15.5 zone in order to start a position.
- Probably better to open a position earlier at 16 to front-run algos.
- If decent volume at 18 level occurs and it holds, start a position there.
Please let me know if this was helpful and if you want to see more analysis with volume profile.
Trade wisely and good luck!
-----------------------------------------------------------------------------------------------------------------
Disclaimer!!!
This is not financial advise.
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