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Patterns › Volume profile bounce vs Volume profile rejection

Look-alikes

Volume profile bounce vs Volume profile rejection

They look alike, so beginners mix them up. Here is what each one means, and how often each one worked on real charts.

Volume profile bounce

Price fell back to the price where the most trading happened, and bounced.

A volume profile shows how much trading happened at each price, drawn as bars on the side of the chart. The point of control is the price level with the most trading. A volume profile bounce is when price comes down to or near the point of control from above and a green candle closes back above it. Many traders see that busy price as support, but it can also break.

Treating the point of control as a wall, when price can slice right through it.

The volume profile bounce in full ›

Volume profile rejection

Price rose back to the price where the most trading happened, and turned down.

The point of control is the price level with the most trading in the volume profile. A volume profile rejection is when price comes up to or near the point of control from below and a red candle closes back below it. Many traders see that busy price as resistance when price comes from below. But a busy price can also pull price through it, so the rejection is only a clue.

Treating the point of control as a wall, when price can climb right through it.

The volume profile rejection in full ›

Real odds side by side

PatternFoundTarget firstStop firstWent nowhere
Volume profile bounce61,33036%58%6%
Volume profile rejection63,35937%56%7%

Counted by the Trading Class research engine on real past candles: entry at the signal candle's close, target 1.5 × ATR(14), stop 1 × ATR(14), 12 candles to decide, a candle that touches both counts as the stop. How we count. Past data, not a forecast and not advice.