Volume profiles provide another dimension of the market besides price action. "Areas of confluence" or in terms of volume profiles, the POC (point of control) gives us another visual representation of where markets are likely to consolidate and eventually break out.
It gives us multiple POCs as well as "dead zones" or low volume nodes. These lvls act as S&R and visualize the market in a different way.
POC breaks:
Looking for textbook retests or in most cases HHs or LLs of the POCs.
Medium or small POCs act as a new trend confirmation for the breakout you expect in the current POC consolidation (also a channel breakout in most cases).
Deadzone breakouts:
Deadzones either get retested or broken through. But if it breaks through, it confirms that the general price has gone through few if any interesting zones. It confirms that the general market does not want that price as before seen, but rather a higher or lower one. That tells us that we are in a more bullish or bearish market.
Now look for a single or double retest above or below depending on the trend ofcourse and we have a BUY or SELL signal.
With parabolic, no retest breakouts of a POC, we can place a trade when we see it break multiple lvls in one candlstick.
SL and TP should be moved when lvls are broken. Use ALARMS and stay in a trade with the initial risk and significantly increase your R/R ratio.
Risk management is the key, as are your volume SLs.
Good luck trading volume profiles
It gives us multiple POCs as well as "dead zones" or low volume nodes. These lvls act as S&R and visualize the market in a different way.
POC breaks:
Looking for textbook retests or in most cases HHs or LLs of the POCs.
Medium or small POCs act as a new trend confirmation for the breakout you expect in the current POC consolidation (also a channel breakout in most cases).
Deadzone breakouts:
Deadzones either get retested or broken through. But if it breaks through, it confirms that the general price has gone through few if any interesting zones. It confirms that the general market does not want that price as before seen, but rather a higher or lower one. That tells us that we are in a more bullish or bearish market.
Now look for a single or double retest above or below depending on the trend ofcourse and we have a BUY or SELL signal.
With parabolic, no retest breakouts of a POC, we can place a trade when we see it break multiple lvls in one candlstick.
SL and TP should be moved when lvls are broken. Use ALARMS and stay in a trade with the initial risk and significantly increase your R/R ratio.
Risk management is the key, as are your volume SLs.
Good luck trading volume profiles