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Does the Fixed Range Volume Profile Value Area Trap Breakout Traders?

Earl Christian

Traders use the Fixed Range Volume Profile tool to identify high-volume acceptance zones and trade breakouts when price leaves the range. However, institutional liquidity algorithms often use the Value Area High and Low boundaries to trigger retail breakout market orders right into resting institutional limit orders. Is trading a Value Area breakout a legitimate edge or just getting trapped at range extremities?

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  • Earl ChristianOP

    Why does price consolidate inside the 70 percent Value Area for days, only to fake a breakout past the Value Area High before dropping back to the Point of Control?

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