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Volume profile mastery


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Volume profile mastery

  #11 (permalink)
 
bobwest's Avatar
 bobwest 
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forgiven View Post
you expiring volume profiling day traders need to spend some time with Johnny Boys lessons on trading the VWAP . they work very well in combination. its the best material for day trading on this forum .


DXB Trader View Post
Where can I find this? Thanks.


matthew28 View Post
You can normally search by forum username in the Search box, but as the name was spelt incorrectly, this will make it easier:

Actually, @JonnyBoys' VWAP material is in a different thread. A good place to start is with this series of posts, and then continuing on in that thread:



Note that VWAP and volume profile, while related in a very loose sense, are different. They may be helpful in combination, as @forgiven said, but it will depend on the use that is made of them by the trader.

To keep things straight, let's keep VWAP discussion in the VWAP thread, and volume profile in this one (unless discussing the relation between the two, which is fine in either one. )

Bob.

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  #12 (permalink)
Tryingtoscalp
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@Quantiki

Hello, are you talking about a composite, the VP overly multiple days or weeks?

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  #13 (permalink)
 
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 forgiven 
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what does a volume profile trade set up look like . most charting platforms have volume profile charting . you put the past trading days RTH on a volume profile and turn one the value area and volume POC feathers . what your looking for first is balance or a normal distribution day . this is where new volume and market profile traders get lost in the weeds . there can be know value with out balance. the past days trading day should look like some kind of normal bell curve. it also must be with in 15 % of the instruments average daily range. if the two conditions are there its called a primary day. next you look for price to retest the volume POC and brake out of the top of the value area were you go long . the stop goes just below the value area low . your target is 1 to 2 tames the instruments average daily range . if you want to add some filters . make sure price is trading above the 8 day EMA on a daily and weekly chart and you have one time framing on a daily and weekly charting .. hope it helps

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  #14 (permalink)
 
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 Blash 
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forgiven View Post
there are no experts . volume profile is a simple concept . there are high volume nodes and low volume nodes . like any thing in trading , the larger the time frame the stronger price will react to a retest of one of the areas . low volume nodes are some time call areas of minus development or holes in the chart. if prices is not quickly rejected when it trades into one of theses areas it will likely action across the area very quickly . like a big opening gap filling in the morning . the high volume nodes are more like magnets . they pull price there. like if you gap up price will often retest the last trading days volume point of control . hope it helps

What do you mean, "there are no experts"?

Volume Profiling is all about value, understanding value, what prices constitute value, where is price related to value....where it's considered valuable and where it is not.

Finding value for something simple like a trailer hitch is easy.

Finding key value areas in Index Futures, for example, where it moves around, multiple areas come into play and overlap etc, isn't. Not to mention how value can relate across different instruments and asset classes.

You did not mention Value once in the above.

Session profiles still have their place, but profiling volume is an art that is practiced and drawn where appropriate.

Maybe you meant, "I'm no expert".....?

FT71 is an expert that quickly comes to mind. Kam is another.

Ron

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  #15 (permalink)
 
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 forgiven 
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Blash View Post
What do you mean, "there are no experts"?

Volume Profiling is all about value, understanding value, what prices constitute value, where is price related to value....where it's considered valuable and where it is not.

Finding value for something simple like a trailer hitch is easy.

Finding key value areas in Index Futures, for example, where it moves around, multiple areas come into play and overlap etc, isn't. Not to mention how value can relate across different instruments and asset classes.

You did not mention Value once in the above.

Session profiles still have their place, but profiling volume is an art that is practiced and drawn where appropriate.

Maybe you meant, "I'm no expert".....?

FT71 is an expert that quickly comes to mind. Kam is another.

Ron

FT71 says there is no value with out balance . he is correct on that . why don t you take a shot and tell us all what balance is and how to find it .

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  #16 (permalink)
 
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 Blash 
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forgiven View Post
FT71 says there is no value with out balance . he is correct on that . why don t you take a shot and tell us all what balance is and how to find it .



Nice try.

Ron


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  #17 (permalink)
 Keab 
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Volume profile is fantastic but is not a tool to be used in isolation.
You have to use it understanding the context of the market, along with whether there is any confluence of levels going on e.g. has price just breached a daily low/swing high or low etc.

Example in ES today r.e. context. Price moved higher at the open and hit the Friday VPOC. Then showed signs of going lower and it ultimately did move lower.

The context would be-'has anything changed on a fundamental basis from Friday that can justify today's price moving higher from here?'
I would answer no. So if that's the case you have a reference point/confluence of levels(the VPOC and price has stopped and is looking like reversing) allied with a fundamental context for the move.
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  #18 (permalink)
 
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 forgiven 
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Keab View Post
Volume profile is fantastic but is not a tool to be used in isolation.
You have to use it understanding the context of the market, along with whether there is any confluence of levels going on e.g. has price just breached a daily low/swing high or low etc.

Example in ES today r.e. context. Price moved higher at the open and hit the Friday VPOC. Then showed signs of going lower and it ultimately did move lower.

The context would be-'has anything changed on a fundamental basis from Friday that can justify today's price moving higher from here?'
I would answer no. So if that's the case you have a reference point/confluence of levels(the VPOC and price has stopped and is looking like reversing) allied with a fundamental context for the move.
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nice example , the trade you want on that chart is when price trades into the hole or area of minus development . it trades across that area more quickly , momentum and direction is more certain , and the target and stop placement are clearly defined . the high volume nodes or areas of balance .

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  #19 (permalink)
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What software would you suggest is best for volume profile analysis?

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  #20 (permalink)
 Keab 
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forgiven View Post
there are no experts . volume profile is a simple concept . there are high volume nodes and low volume nodes . like any thing in trading , the larger the time frame the stronger price will react to a retest of one of the areas . low volume nodes are some time call areas of minus development or holes in the chart. if prices is not quickly rejected when it trades into one of theses areas it will likely action across the area very quickly . like a big opening gap filling in the morning . the high volume nodes are more like magnets . they pull price there. like if you gap up price will often retest the last trading days volume point of control . hope it helps

Your post is fantastic and is a great riposte to what I think is one of the huge problems that people encounter when learning to trade (and something I experienced myself). And that is the endless circular waffle and overly intellectual (and therefore unintelligible) language that people employ to describe what are actually very simple concepts.

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Last Updated on August 7, 2020


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