I'm no expert in using the profiles either but I do think it is the way to catch longer term moves....
I think the method of finding balance and then fading the market when it gets out of balance is a valid technique and something you should persevere with.
Anyway - regarding the Tape/DOM on these trades. This is something I've been meaning to put up for a while and I'll put an abridged version here and do the full thing later.
This is a representation of a swing. Market moves down, market moves up.
What a lot of people focus on when reading tape/DOM is on nailing point "D" and entering a trade there. It certainly is possible to catch a reversal point like that (esp if it's a reversal from a pullback) but don't make that all you look for.
A->C - When a market is putting in a sustained move, it has a certain appearance on your tools. In this case it's a down move and we'd define that 'appearance'/behaviour as Selling Pressure. If you focus on nailing "D" all the while, you may well find you keep jumping in front of Selling Pressure. So, with all your charts switched off, spend some time focused on the DOM & learn to recognise those A->C moves.
Sometimes, you see a market moving down and down and down and down and all the time you have your finger hovered over the buy button waiting for the opportunity to go long. I can tell you I spent a lot of time doing this through extended down moves. The thing is, if you see this type of action - SHORT IT. Don't sit there for 20 minutes watching the market going down waiting for a long opportunity.
You'll only be able to short these fairly easy to take opportunities if you look for the buying/selling pressure and go with it. You need to train your eyes to see it and see it early.
D - Point "D" is usually either someone holding the market, absorbing the sell market orders hitting the bid OR it's shrinking balls on behalf of the sellers - they simply stop selling there. The problem with "D" is that the absorbing and shrinking balls happens a lot on the way down. So - if you go by that alone, you are going to go through a lot of pain in the learning process. That sort of trade needs 1 or 2 other reasons to take it in my opinion (such as it being the end of a measured move).
E - A lot of people call this entry a non-optimal entry. The people that harp on about Wholesale vs Retail prices would say it's crap because you are paying retail prices. Well fnck them. If you think about it - you should already know what you are going to see at point E. You'll have seen the "hold" at point "D" but right now it's probably best to pass those by and wait till you see buyers jump in and push price up AFTER the hold. You have 2 signs off the DOM then - the hold and subsequent buying pressure.
So - how will you know buyers have jumped in? How will you know it's real buying pressure this time? Well - you'll never know for certain but I'm pretty sure your ability to spot A-C type moves will come in handy. In effect, you give up a few ticks for confirmation.
All of this will fit in around your volume profile method. It's just suggestions on how to refine the entry.
I think you have my Skype id - feel free to hook up for a chat.