Hey all,
Been digging deep into Volume Profile recently, specifically trying to move beyond the basic HVN/LVN identification. I've found that focusing on hidden liquidity pockets can be a game-changer for anticipating moves, especially on lower timeframes where order flow is more chaotic.
My current approach involves using the Fixed Range Volume Profile tool on periods where I expect significant accumulation or distribution, often around key support/resistance levels or after a sharp price move. Instead of just looking at the overall POC, I'm zooming in on smaller, often overlooked VP clusters within larger ranges. These clusters, especially those with high volume but not necessarily a clear POC, can act as stealthy liquidity pools.
For example, I'll set the VP range for a 12-hour period leading up to a significant news event. If I see a tight cluster of volume at, say, $58,500, even if the overall POC for that range is higher, I'll mark $58,500 as a potential area where hidden buy/sell orders might be sitting. Price often tends to gravitate towards these zones before continuing its trend.
Has anyone else experimented with this kind of granular Volume Profile analysis? I'm particularly interested in:
- Specific settings or timeframes you find most effective for uncovering these hidden pockets.
- How you combine VP insights with other indicators (like order blocks or market structure) to confirm trades.
- Any specific VP patterns that reliably signal imminent reversals or continuations within these pockets.
Looking forward to hearing your strategies!