What happens when Volume Profile Gives a Breakout

Price moves due to imbalance between Demand & Supply.

Volume Profile enables you to clearly see that imbalance.

With the help of Volume Profile, you get to know the point of balance between Selling & Buying Pressure.

When that balance is disturbed, position of many people starts giving them a loss. A point comes when they can no longer tolerate their loss making trade.

That is where Short Covering takes place and pushes the price even further up.

Look at the breakout shown by Granules stock on Daily Candle. It is 21% down from its recent peak.

This breakout might give you the opportunity to get 5 to 10% return in short term and 10 to 20% return in medium term.


I will update this idea after few days.

Disclaimer: I do not hold any shares of this stock nor I plan to buy them in near future.