VOLUME & CONTEXTVolume Profile
A view of traded volume distributed across price levels over a selected period. The Point of Control identifies the price level with the most volume in that profile; a value area summarizes a selected region of volume.
How we use it: Compare the 15-minute, 30-minute, 1-hour, and 4-hour profiles for context. Settings and session boundaries are not specified.
Specific confirmation criteria vary by setup and have not been defined as fixed rules. We consider what price behavior would invalidate the working idea.
KEY LEVELSPOC and value areas
The POC is the highest-volume price in the selected profile. Value area boundaries frame the profile’s selected volume region; definitions depend on platform settings.
How we use it: Treat these as observed reference levels, not standalone directional signals.
Specific confirmation criteria vary by setup and have not been defined as fixed rules. We consider what price behavior would invalidate the working idea.
DISTRIBUTIONHigh-volume nodes
Areas where the profile shows relatively concentrated traded volume. They may reflect accepted activity within the selected sample.
How we use it: Consider how price responds near the level alongside structure and other context.
Specific confirmation criteria vary by setup and have not been defined as fixed rules. We consider what price behavior would invalidate the working idea.
PRICE ACTIONBullish and bearish order blocks
A Smart Money Concepts chart interpretation that marks a prior price area based on a chosen candle/structure convention. There is no universal definition.
How we use it: Use as a hypothesis about a potential reaction area. The label does not confirm who traded there or why.
Specific confirmation criteria vary by setup and have not been defined as fixed rules. We consider what price behavior would invalidate the working idea.
PRICE ACTIONBreaker blocks
A Smart Money Concepts interpretation of a prior order-block area after price breaks through it. Identification conventions differ.
How we use it: Assess alongside actual break and retest behavior. It does not prove institutional activity.
Specific confirmation criteria vary by setup and have not been defined as fixed rules. We consider what price behavior would invalidate the working idea.
MARKET STRUCTURESupport and resistance
Price areas where the chart shows prior reactions, pauses, or turning points. Levels are areas of interest, not barriers.
How we use it: Use them to frame possible reaction, breakout, breakdown, retest, and invalidation scenarios.
Specific confirmation criteria vary by setup and have not been defined as fixed rules. We consider what price behavior would invalidate the working idea.
STRUCTUREPrice channels
Parallel or horizontal boundaries drawn around a sequence of price swings. Channels can be ascending, descending, or horizontal.
How we use it: Observe whether price respects or breaks the drawn boundaries; a channel can fail or be subjective.
Specific confirmation criteria vary by setup and have not been defined as fixed rules. We consider what price behavior would invalidate the working idea.
SCENARIOSBreakouts, breakdowns, and retests
A breakout or breakdown is price moving beyond a watched area. A retest is a subsequent return toward the broken level.
How we use it: Treat continuation and failure as possible scenarios. Confirmation rules are not defined as a fixed trigger.
Specific confirmation criteria vary by setup and have not been defined as fixed rules. We consider what price behavior would invalidate the working idea.
SYNTHESISCombining tools with a market bias
A directional bias is a working hypothesis developed from price action and structure. Multiple tools can provide context but can also conflict.
How we use it: Compare independent observations and define invalidation before entry. No tool combination guarantees an outcome.
Specific confirmation criteria vary by setup and have not been defined as fixed rules. We consider what price behavior would invalidate the working idea.
EXECUTIONRisk/reward and stop planning
A plan compares intended risk to intended reward and defines a stop-loss and target before entry. Actual fills may differ.
How we use it: We plan with account balance, stop distance, position size, target, and invalidation in view. No exact risk limit or ratio is published.
Specific confirmation criteria vary by setup and have not been defined as fixed rules. We consider what price behavior would invalidate the working idea.
No particular pattern or indicator independently predicts price movement. Examples will be linked here only when supported by actual chart records.
