How to use Volmans Price Action?

<p id="isPasted">Price action trading strategy combined with 21 period moving average.</p><p>Use the 21 period moving average and filter along with price action to identify the main trend then look for pullback signals that match the filter to enter.</p><p>The stops, entry points and trends are depicted on the chart.</p><p>Example using 100 contract size with crude oil, slippage is 3 and commission per order is 3$ with actual capital of 10000$, you can adjust other contract size for other pairs to consistent with reality.</p>

<p id="isPasted">Bob Volman’s price action methodology focuses on trading "naked charts" by identifying compression and breakouts. His approach emphasizes that profitable moves often occur when price is "squeezed" between a technical barrier and a moving average.&nbsp;</p><p><strong>1. The Core Setup: The "Squeeze"</strong></p><p>Volman's strategies typically involve two main components:</p><ul><li>The Technical Barrier: A horizontal support or resistance level that has been tested multiple times.</li><li>The 25-Period EMA: Volman uses a 25-period Exponential Moving Average (EMA) on a 5-minute chart (or a 20-period EMA on a 70-tick chart for scalping) as a dynamic reference point.</li><li>The Squeeze: A high-probability trade occurs when price is sandwiched between the EMA and the barrier. This "pre-breakout buildup" indicates that the market is coiling like a spring, ready for an explosive move.&nbsp;</li></ul><p><strong>2. Key Trading Setups</strong></p><p>Volman identifies several specific patterns to trigger trades:</p><ul><li>Block Break (BB): A cluster of bars tightly grouped in a narrow range. You enter as soon as price breaks out of this "block" in the direction of the trend.</li><li>Range Break (RB): Trading the breakout of a well-defined horizontal range. Volman cautions against "exhausted" breaks—look for a squeeze near the boundary before the break happens.</li><li>Inside Range Break (IRB): A breakout that occurs inside a larger range, often accelerating toward the nearest major barrier.</li><li>First &amp; Second Break (FB/SB): Trading pullbacks within a trend. The Second Break is considered a superior setup as it signals a more reliable resumption of the original trend after a failed first attempt.&nbsp;</li></ul><p><strong>3. Execution and Risk Management</strong></p><p>To trade these setups for a "good profit," Volman recommends a disciplined framework:&nbsp;</p><ul><li>Entry: Enter immediately when the "signal bar" (the bar that breaks the pattern) is taken out by one pip.</li><li>Stop-Loss: Typically placed just beyond the recent swing high/low or the other side of the "squeeze" pattern (approx. 6–10 pips).</li><li>Profit Target: A standard target of 10–20 pips to maintain a positive risk-to-reward ratio.</li><li>The "Tipping Point": Never move your stop-loss further away from the target; only adjust it in the direction of the profit to lock in gains or minimize damage.&nbsp;</li></ul><p><strong>4. Why It Works</strong></p><p>Volman’s method exploits "Double Pressure"—the moment when traders on the wrong side of a squeeze are forced to cover their positions (buy or sell) at the same time new traders enter the breakout, fueling a rapid move.</p>