Volume Profile: A Breakout-and-Retest Setup

The speaker presents volume profile as a way to turn a trading range into a specific entry reference: identify the price where the most volume traded, then watch for a return to that level after an upward breakout. Its proposed value is a simple sequence connecting market structure, entry, stop and profit target—not evidence that the sequence reliably produces profits.

• Start with a range, not an immediate trade. The first step is to find prices contained between a high and a low. The speaker then instructs viewers to draw the volume profile from the range high to the range low. This establishes the area being analyzed before introducing the breakout setup; the presentation does not begin with an entry signal in isolation.
• Read the profile as volume distributed by price. Each bar represents how much volume traded at that price. The longest bar identifies the point of control (POC), meaning the price with the most volume in the selected profile. This is the central indicator reading used throughout the example: the subsequent entry is tied to that particular price, rather than simply to the range boundary.
• Separate the measurement from the interpretation. The highest-volume price is the stated definition of the POC. Calling it the market’s “fair price” is the speaker’s suggested way of thinking about that measurement. The presentation uses this framing to make the level meaningful, but supplies no separate valuation argument or evidence establishing that “fair price” interpretation.
• Wait for an upward breakout, then a return. The proposed sequence is price breaking above the range and subsequently coming back to retest the POC. The speaker says this happens “very often,” without quantifying the frequency. The described entry is therefore not the initial break above the range: it is a long position at the POC on the return. No short-side equivalent is discussed.
• Attach the entry to explicit risk and reward rules. The proposed stop-loss sits “just below” the POC, while the profit target is three times the risk. These instructions describe a 1:3 risk-to-reward setup, not a forecast of the probability of winning. The illustrated entry, stop and target brings those elements together, although the spoken explanation does not specify an exact stop distance.
• Treat the successful finish as an illustration. The speaker ends by presenting the example as reaching take profit. That demonstrates the intended path through the setup: range, profile, breakout, retest, long entry and target. It does not establish how frequently the same sequence succeeds or what happens across unsuccessful attempts.

Caveats: This is a brief strategy demonstration, not a documented performance study. The supplied material gives no instrument, timeframe, sample size, win rate, trading-cost assumptions or precise retest-confirmation rules. Its claim about frequent returns to the POC remains unquantified; the successful example should not be read as proof of profitability.

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