Here are the 3 powerful secrets that many advanced traders use with the Fixed Range Volume Profile to understand what whales (large institutions) are doing in the crypto market.
1) The trap of the moved POC
The POC (Point of Control) is normally the price with the most volume.
But sometimes institutions
deliberately move the volume.
What it means
When the POC gradually moves
upward buyer accumulation
downward selling pressure
Professional traders observe the direction of the POC movement.
Example
If on Bitcoin
the price consolidates
but the POC rises little by little
this means that big buyers are accumulating Often the market ends up pumping.
2) The absorption area of the whales
An absorption area is a place where a lot of volume appears
but the price barely moves
This means someone is absorbing the orders.
Two possible cases
Absorption of purchases
Many purchases are coming but the price does not rise.
The whales sell in silence
Often, this ends up in a dump.
Absorption of sales
Many sales are coming but the price does not go down.
The whales buy in silence.
Often this ends up in a pump.
3) The signal that often announces a big movement
This signal appears when:
A large volume area (HVN) forms
Then a low volume area (LVN) just after.
Typical structure:
HVN, LVN, HVN
This means that the price can cross the LVN very quickly.
This is often where it starts,
the big pumps
the big dumps
4) Rule that institutional traders know
The market often works like this:
High volume rapid movement new volume
So the price travels between areas of significant volume.
That is why the Volume Profile is very powerful on TradingView.
5) Small summary
Signal What it means
POC that rises accumulation of buyers
POC that descends selling pressure
Large volume without movement absorption of whales
LVN rapid movement.
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