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Is Volume Profile worth learning or is it an outdated concept?


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Is Volume Profile worth learning or is it an outdated concept?

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  #11 (permalink)
Philadelphia, Pa
 
Experience: Intermediate
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Outdated? The profile is a statistical method to show where the trading community finds current value. That can never be "outdated". How you decide to use the profile is up to each individual trader. If you have a successful method you may want to incorporate the profile into you strategy. You may find that your successful strategy and the profile are very compatible.

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  #12 (permalink)
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gnoppa View Post
I'd also love to hear more about it. So far I am learning how to trade price action from Brooks. He says that volume/DOM can be helpful but usually it is unnecessary. Has anyone learned PA trading from Brooks and improved it by incorporating volume profile?

Edit: Also SMB seems to be all about selling their super expensive course.

Hi gnoppa

VP and DOM are useful but you should also consider to use some other parameters like Footprint, Imbalances etc. Each thing is llike a piece of a puzzle and when you get all them together than it's done. BUT also consider that there are some further factors in order to be successful!

The one and only indicator or parameter does not exist just to keep that in mind! At the end of the day you should understand the meaning of all theses paramters and how the market reacts.

Cheers from Switzerland,
Carmelo

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  #13 (permalink)
Missioul Montana usa
 
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Volume profile is definitely worth learning. I pay special attention to developing POC (point of control). It (POC) often moves to price at the end of a wave or pattern and the exiter's start creating the churn of say at the end of and up move they start selling into the buyers. Lets say after a five wave force push up and your looking for exhaustion. I look a slight exhaust and poc to move to price. When poc moves to price I look close to see which side of that heaviest traded level starts defending/pushing..in other words which side of the heaviest traded level do the new orders coming in want to go. I use it a lot for all kinds of things. Definitely worth "learning"...not so much to trade directly off of but as a way to see behind/beyond price a bit. Trading is usually off a sequence of things and its definitely in the sequence for me. Price moves from confluence to confluence..in waves and patterns lets say from high of day to vwap/50% range..poc or a heavy volume module is usually there on a confluence...adding "gravity"..really its where it should be confirming the "gravity" or confluence. Volume profile and developing POC are great tools. Should have that arrow in the quiver.

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  #14 (permalink)
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Shovez View Post
Inspired by this thread:
I wanted to start this one.

I've been trading for 5 years. It was hard in the beginning to differentiate what is worth learning and what is just empty promises. In the end I found price action and discretionary trading as my way to go. I haven't had a losing month for the last 1,5 years trading the ES.

As I'm always looking for ways to improve I want to find something which complements my trading. For the last few months I see more and more courses and topics about market/volume profile, order flow, dom, delta and footprint charts, etc. It seems like the "new" trend (I know it's been around for a long time).

I'm a pretty sceptical person which helped me so far in my trading journey. I see guys like futurestrader71 and prop firms like SMB offer mp/vp courses and I'm asking myself: Why are those coming up more and more over the last few years? Is it still relevant?

To sum it up: Is it worth to learn volume profile or what can you recommend to learn for a price action trader?

Thanks!

If you found the system then be happy.
Only increase the contracts depending your account size. Why to research and research??....

Do the same with the same discipline and enjoy the life . Dont spend in courses and change anything

Bernard
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  #15 (permalink)
Denver
 
 
Posts: 21 since Apr 2020
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First, If you have been profitable for 1.5 years, don't change anything, you have obviously found the right balance, your edge and changing or altering it my not be a good strategy. Rather, if you need to make more, increase your trade size.

As for all the shinny new toys, none of them make the trade for you, they are barely odds enhancers, they should be used as trade confirmations of what you are already suspecting is going to happen, rather than decision makers. I think the people who make them make their money from selling them rather than from trading.

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  #16 (permalink)
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Shovez View Post
Inspired by this thread:
I wanted to start this one.

I've been trading for 5 years. It was hard in the beginning to differentiate what is worth learning and what is just empty promises. In the end I found price action and discretionary trading as my way to go. I haven't had a losing month for the last 1,5 years trading the ES.

As I'm always looking for ways to improve I want to find something which complements my trading. For the last few months I see more and more courses and topics about market/volume profile, order flow, dom, delta and footprint charts, etc. It seems like the "new" trend (I know it's been around for a long time).

I'm a pretty sceptical person which helped me so far in my trading journey. I see guys like futurestrader71 and prop firms like SMB offer mp/vp courses and I'm asking myself: Why are those coming up more and more over the last few years? Is it still relevant?

To sum it up: Is it worth to learn volume profile or what can you recommend to learn for a price action trader?

Thanks!

Short answer: There are 3 components to every tick in the market. Time, Price, Volume. Volume being the component that provides a "magnitude" reading on price and time. So, in my opinion, there is a lot to gain and little to lose by learning VP as it gives us a detail of "how much" traded at each price.

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  #17 (permalink)
Seattle, WA
 
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I, too, have found that price action & discretionary trading work for me; I abandoned "indicators" several decades ago. Since the beginning of this year, I have also been using bookmap (bookmap.com) and found it to complement my trading.

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  #18 (permalink)
Ladysmith BC, Canada
 
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gnoppa View Post
I'd also love to hear more about it. So far I am learning how to trade price action from Brooks. He says that volume/DOM can be helpful but usually it is unnecessary. Has anyone learned PA trading from Brooks and improved it by incorporating volume profile?

Edit: Also SMB seems to be all about selling their super expensive course.

Volume is over rated I would be more concerned about Trends. Parablic Sar is exellent for following trends up and down.

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  #19 (permalink)
norman oklahoma
 
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Posts: 2 since Jul 2014
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I don't feel volume profile gives any edge. I don't feel its "outdated", thats like saying a moving average it outdated. Knowing where volume is in the past is just another lagging indicator. As time and price move on new volume come in. POC and VA shift. Also its all relative to the time frame and data you are using.

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  #20 (permalink)
Houston TX/USA
 
 
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Shovez View Post
Inspired by this thread:
I wanted to start this one.

I've been trading for 5 years. It was hard in the beginning to differentiate what is worth learning and what is just empty promises. In the end I found price action and discretionary trading as my way to go. I haven't had a losing month for the last 1,5 years trading the ES.

As I'm always looking for ways to improve I want to find something which complements my trading. For the last few months I see more and more courses and topics about market/volume profile, order flow, dom, delta and footprint charts, etc. It seems like the "new" trend (I know it's been around for a long time).

I'm a pretty sceptical person which helped me so far in my trading journey. I see guys like futurestrader71 and prop firms like SMB offer mp/vp courses and I'm asking myself: Why are those coming up more and more over the last few years? Is it still relevant?

To sum it up: Is it worth to learn volume profile or what can you recommend to learn for a price action trader?

Thanks!

Hi All,

To me all this footprint, imbalance type course appears to deviate the traders from catching big moves. There are lot more people creating noise than actual meat of the business. That's my opinion and understanding from last three-four years in the market. Maybe one has to ask oneself and verify from the charts,
1) Does long term methods still work like pivots, volume profile, market profile, weekly VWAPs?
2) Is it necessary to pay 100s or 1000s of dollars in commissions every month or is it necessary to understand what price/instrument is trying to do in a comparatively longer term, be patient and act accordingly even as a day trader?
3) Big institutions will have big troubles if they keep buying and selling. Imagine a market with no direction.
4) Observe who is trying to sell these scalping course? Brokers, gurus tied with brokers, institutions.

That's my 2 cents.

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