---
title: 'How to Predict Reversals'
source: 'https://youtube.com/watch?v=M1_nhHx2fOA'
video_id: 'M1_nhHx2fOA'
date: 2026-08-19
duration_sec: 61
channel: 'TradingLab'
---

# How to Predict Reversals

> Source: [How to Predict Reversals](https://youtube.com/watch?v=M1_nhHx2fOA)

## Summary

This video presents a method for predicting price reversals using volume profile analysis. It focuses on identifying the value area where 70% of market trades occur and using it to spot reversal signals.

### Key Points

- **Finding the Value Area** [00:00] — Mark the range from low to high of a move and enable VAH and VAL in volume profile settings to find the value area.
- **70% of Trades in Value Area** [00:16] — The value area (between VAH and VAL) is where 70% of market trades occur, making it a key zone to watch.
- **Rejection Reversal Signal** [00:31] — If price pushes outside the value area low but rejects with a larger lower wick, target take profit at the opposing level.
- **Fair Value Gap Trade Setup** [00:44] — If price shoots through the value area fast, leaving a bearish fair value gap, wait for price to wick back inside the gap, then trade to the downside.

## Transcript

Here is how to predict exactly when a&nbsp; reversal is about to happen on any chart &nbsp; First you need to find the area where&nbsp; 70% of the market is entering trades. &nbsp; Mark from the low to the high of a move. Next go to your settings of the volume&nbsp;&nbsp;
profile. Make sure vah and val are enabled. In between these two white lines in the&nbsp;&nbsp; value area, and is where 70% of&nbsp; the market is entering trades. &nbsp; Which if 70% of the market is entering in&nbsp; this area, we can use it to our advantage. &nbsp;
If price pushes outside the value area low, but&nbsp; then suddenly rejects with a larger lower wick. &nbsp; With your take profit targeted&nbsp; to the opposing level. &nbsp;
But say instead of rejecting, price does this,&nbsp; where it shoots through the value area fast. &nbsp; Leaving behind a bearish fair value gap. Just wait for price to wick back inside the gap. &nbsp; Then trade to the downside as these will&nbsp; be some of the most explosive moves.