SOFI boxes strategy in action! feat. volume profileHi everyone!
Today we are analyzing NASDAQ: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 NASDAQ: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!
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Disclaimer!!!
This is not financial advise.
