{"id":671073,"date":"2025-11-14T12:55:32","date_gmt":"2025-11-14T11:55:32","guid":{"rendered":"https:\/\/ftmo.com\/?p=671073"},"modified":"2025-11-14T15:58:11","modified_gmt":"2025-11-14T14:58:11","slug":"master-volume-profile-trading-with-the-va-breakout-strategy","status":"publish","type":"post","link":"https:\/\/ftmo.com\/en\/master-volume-profile-trading-with-the-va-breakout-strategy\/","title":{"rendered":"Master Volume Profile Trading with the VA Breakout Strategy"},"content":{"rendered":"
Many traders focus only on price, but that is just half of the story. Volume reveals how real a move is because it shows participation<\/strong> and trader interest<\/strong>. Price tells you what is happening, while volume tells you how genuine it is.<\/em><\/p>\n Learning to read volume allows you to confirm breakouts<\/strong>, filter out market noise<\/strong>, and spot early signs of reversals<\/strong>. Once you understand how to apply it correctly, volume becomes one of the most powerful confirmations in your trading toolkit.<\/em><\/p>\n Volume trading<\/strong><\/a> measures the number of contracts, shares, or lots traded during a specific period. In stocks and futures, volume data shows the actual quantity traded. In the forex market, brokers use tick volume<\/strong>, which represents the number of price changes within a candle.<\/p>\n Although it\u2019s not a direct measure of traded lots, it closely mirrors institutional activity and remains a valuable indicator of market participation.<\/p>\n The key concepts in volume trading help traders understand how market participation shapes price movement. Tools like VPOC<\/strong>, LVN<\/strong>, and Value Area<\/strong> reveal where trading activity is concentrated and where major shifts in sentiment may occur.<\/p>\n The Volume Point of Control<\/strong> is the price level with the highest traded volume<\/strong> within a selected period. \u2022 When price trades above the VPOC<\/strong>, it often signals bullish sentiment<\/strong>, showing that traders are comfortable paying higher prices.<\/p>\n \u2022 When price trades below the VPOC<\/strong>, it reflects bearish sentiment<\/strong>, indicating that sellers dominate the market.<\/p>\n How to apply it:<\/strong> A Low Volume Node<\/strong> is a price area where little trading occurred. It represents market inefficiency or a zone where participants showed little interest in transacting.<\/p>\n How to apply it:<\/strong> The Value Area<\/strong> shows where around 70% of all trading volume<\/strong> took place during a session \u2013 basically the market\u2019s comfort zone.<\/p>\n \u2022 Value Area High (VAH):<\/strong> The top of that zone. If price moves above it and volume increases, the market is breaking out into new territory, and VAH serves as a support zone. If the move above VAH fails, it often signals a rejection, and there is a high probability of returning back to the VPOC if it is inside the VA or to the VAL<\/p>\n \u2022 Value Area Low (VAL):<\/strong> The bottom of the zone. If the price drops below VAL, it indicates sellers are in control. A bounce from VAL often suggests renewed buying interest.<\/p>\n Together, VAH<\/strong>, VAL<\/strong>, and VPOC <\/strong>show whether the market is balanced (ranging) or imbalanced (trending). Traders use these levels to identify breakouts, rejections, and high-probability entry zones.<\/p>\n Before applying any strategy, it is important to understand the market structure. Value Area (VA) and VPOC levels can help identify whether the market is bullish, bearish, or ranging.<\/p>\n \u2022 Bullish Market: <\/strong>If the opening price is above the previous day\u2019s VAH, it signals strong buying momentum. The VAH often becomes a support zone, providing opportunities for trend continuation trades.<\/p>\n \u2022 Bearish Market: <\/strong>If the market opens below the previous day\u2019s VAL, it reflects selling pressure and ongoing bearish momentum. The VAL then acts as a resistance zone that supports continuation of the downtrend.<\/p>\n \u2022 Ranging Market: <\/strong>When the market opens inside the previous day\u2019s Value Area, it signals indecision and consolidation. In these situations, focus on potential breakouts or tests of the VAH and VAL to identify the next move.<\/p>\n Concept:<\/strong> Monitor the previous day\u2019s VAH and VAL. If the current day opens within the Value Area, wait for a confirmed breakout above or below it.<\/p>\n \u2022 A candle close below the VAL confirms that sellers are in control and that the bearish trend is likely to continue.<\/p>\n \u2022 A close above the VAH highlights bullish dominance and signals a potential continuation of the uptrend.<\/p>\n Entry and Risk Management:<\/strong> Once the breakout direction is confirmed, look for a pullback to the breakout level (VAH or VAL) to enter your trade. Place your stop loss below\/under the range, or in a strongly trending market, below or under the Fair Value Gap (FVG)<\/a> for additional protection.<\/p>\nWhat Is Volume Trading<\/h2>\n
<\/a><\/h3>\nKey Concepts in Volume Trading<\/h2>\n
VPOC (Volume Point of Control)<\/h3>\n
\nIt represents the market\u2019s fair value, where both buyers and sellers found equilibrium.<\/p>\n
\nWatch how price behaves when it approaches the VPOC. A strong rejection often suggests that large players are defending this point. If the VPOC gradually shifts upward or downward over time, it signals that institutions are repositioning, providing a strong directional clue for trend continuation or reversal.<\/p>\nLVN (Low Volume Node)<\/h3>\n
\nLVNs can act as breakout or rejection zones. Combine LVNs with candlestick formations for higher accuracy. For example, a long rejection wick near on the LVN level often signals a strong institutional reaction.
<\/a><\/p>\nValue Area (VAH & VAL)<\/h3>\n
How to Identify a Bullish, Bearish, or Ranging Market<\/h2>\n
VA Breakout Strategy<\/h2>\n