If I am wrong, please be brutally honest with me. I would rather learn the truth than to keep arguing with the market. I am using a 3 day fixed volume profile on the 30minute chart. I am, self taught, new to volume profiles and NOT a successful trader (5 years and many blown accounts to prove it), so please do not copy this trade. I have posted this whilst experimenting with volume profiles. I can't quite work out what the right parameters are for volume profiles. How many days to look back to if on a 30 minute chart, settings of the profile itself and how to trade it overall. The trade here is a lucky short, tomorrow i bet the profile won't work.
I guess that is my weakness, I am trigger happy and have the uncanny ability to to convince myself of patterns and trades that are bad for me and don’t exist. You see I like the idea of volume ( Like you said, it is secondary to price. Maybe even first as there can’t be price movement without volume/pressure). I have tried fibs before. In hindsight they look fantastic. The number of times I have looked at a chart and thought to myself, ‘ I knew that was going to happen.’ But my trouble with them has always been this. You have picked out an impulse wave, price pulls back and you intend to enter the market at one of the fib levels. I am of the simplistic mind that out of a choice of 3 fib levels, the trader should know which one will get hit before-hand. Otherwise you are forever chasing the market and increasing your risk every time price moves away from whichever final pullback point was hit. On the other hand, with the right parameters, volume profiles should in essence tell you what level price will pull back to. Potentially they could become guaranteed confirmation to fib levels, adding more certainty to the fibs. I struggle with fibs because I find that it increases my cognitive dissonance simply because I don’t know what line is going to be final. I guess in some way I am saying, there ought to be a way that one can get an answer with certainty rather than guessing. At the same time it might be there already and I am just too dumb to see it. In some sad attempt, I am hoping to find that in volume profiles. If you listen to the DOM/level 2 advocates, they profess to seeing that certainty. I agree with them except the DOM is just another minefield that looks like a nasty headache.
dRends35
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There are many perspectives of course, and although volume is second to price, I don't see it as hugely relevant right now, other than to show that there isn't much impetus, there is lack of impulse. Bitcoin has been corrective for the entirety of this year. For as much as Bitcoin continues in a uniform pattern, I would prefer to look to fib levels to find entry points, and if I did enter, it would only be with the current dominant trend, which is to the downside. I would not trade bullish in a corrective coil such as this, as I don't want to be taking the escalator up, only to find myself missing the elevator down.