[00:00] precise that the moment I started implementing&nbsp; this into my own personal trading strategy. &nbsp; I instantly saw my winrate start to skyrocket. And after watching this video, you will not only&nbsp;&nbsp;
[00:14] know how to use the volume profile But will know all of my secrets on&nbsp;&nbsp; how I personally use it, in my&nbsp; own personal trading strategy. &nbsp; And at the end, we re going to look at a real&nbsp; AMD trade that resulted in a 300% move.. &nbsp;
[00:28] All because the volume profile&nbsp; flagged it before it even happened. &nbsp; Now I m sure most of you&nbsp; have heard of normal volume. &nbsp;
[00:47] You get a big volume bar on a big candle,&nbsp; must mean something important happened.&nbsp;&nbsp; Here s the thing with normal volume. While yes, it can be somewhat useful. &nbsp;
[01:01] The default volume bar at the bottom of your&nbsp; chart tells you how much was traded that day,&nbsp;&nbsp; but it has no idea what prices the real&nbsp; buying and selling pressure is occurring &nbsp;
[01:14] That means every single day, you're&nbsp; likely entering trades at the exact&nbsp;&nbsp; price levels where institutions are offloading So the question becomes: what if you could see&nbsp;&nbsp; where the volume happened, not just when? What if every single price level had its own&nbsp;&nbsp;
[01:29] volume bar attached to it so you&nbsp; could instantly see which prices&nbsp;&nbsp; institutions were actually interested in? That s where the volume profile comes in. &nbsp; The volume profile is basically just a normal&nbsp; volume indicator, but flipped on its side. &nbsp;
[01:45] So now Instead of seeing volume over&nbsp; time, you now see volume per price level. &nbsp; And see which price levels had&nbsp; the highest amount of volume. &nbsp; And if you re thinking like I m thinking..&nbsp; we can use this to our advantage. &nbsp;
[01:58] First things first, go trading view. If you don t&nbsp; yet have it, I ll leave a link in my description. &nbsp; Go to the indicators tab, search volume profile. Make sure you choose this fixed one right here. &nbsp; Once you have selected it, draw a line from&nbsp; a recent swing low, to a recent swing high. &nbsp;
[02:13] Next go to the settings of the indicator,&nbsp; and enable the volume area high and the&nbsp;&nbsp; volume area low. This is very important. Now, throughout this uptrend, we can easily&nbsp;&nbsp; see where strong points of interest are. In this uptrend, we can see areas with&nbsp;&nbsp;
[02:27] high distributions of volume. And we can see areas with low&nbsp;&nbsp; a lot of trading happened in these areas. And less trading happened in these areas. &nbsp; Usually, areas with low amounts of volume. Means&nbsp; one side of the market is dominating the other.&nbsp;&nbsp;
[02:43] So either buyers or sellers are clearly winning&nbsp; by a landslide and price isn t there for very&nbsp;&nbsp; long. Which is why, there is low volume. In areas with high amounts of volume,&nbsp;&nbsp; means there isn t such a clear winner and there&nbsp; is big ongoing fight between buyers and sellers. &nbsp;
[02:59] To give you some sort of price action example. It will often look like this. &nbsp; then low amounts of volume again. So price will most likely look like this. &nbsp;
[03:11] Where its going up fast, without a lot of&nbsp; hesitation, during these low volume areas. &nbsp; Then the moment we start hitting high volume&nbsp; areas, price will likely consolidate and start&nbsp;&nbsp; moving sideways. Spending a lot of time here. Which is why there is a lot of volume. &nbsp;
[03:26] Then we start heading into a low volume&nbsp; area again, where price again moves freely,&nbsp;&nbsp; without a lot of hesitation. So to put it simple, price will&nbsp;&nbsp; have big spikes in the low volume areas, and&nbsp; will consolidate more is high volume areas. &nbsp;
[03:44] When using the volume profile, you will have&nbsp; 3 main lines you ll need to pay attention to. &nbsp; In other words, the point in this uptrend that&nbsp; had the most amount of volume or where the&nbsp;&nbsp;
[03:57] most amount of traders were active. Then you have the volume area high&nbsp;&nbsp; represented by this line. In between these lines, create this zone.. &nbsp; And this zone is where 70%&nbsp; of all volume was traded. &nbsp;
[04:13] And if you use it correctly, it can show&nbsp; you exactly where big money is likely&nbsp;&nbsp; Say we have this volume profile. We have the point of interest. &nbsp; Which means, 70% of all trades&nbsp; happened within this area. &nbsp;
[04:30] Or in other words, very cheap prices,&nbsp; where smart money wants to buy. &nbsp; Or very expensive prices where&nbsp; smart money wants to sell. Based&nbsp;&nbsp; on this trends historical statistics. So often times price, will go below the&nbsp;&nbsp;
[04:46] value area low, for a very short period of&nbsp; time, and will want to mean revert back to&nbsp;&nbsp; point of interest, and spend more time there. Making this spot, a great opportunity to buy. &nbsp; Same goes the other way. Price will go above the value area high,&nbsp;&nbsp;
[05:00] for a short period of time, big money will want&nbsp; to sell here, because prices are very expensive&nbsp;&nbsp; based on past chart history, and will eventually&nbsp; mean revert again back to the point of interest. &nbsp; So a very easy high performing strategy, would&nbsp; be to buy whenever prices become cheap, IE,&nbsp;&nbsp;
[05:17] going below the value area low, take partial&nbsp; profits, when it hits the point of interest,&nbsp;&nbsp; Short whenever price goes above the volume area&nbsp; high, parital profits, when price hits the point&nbsp;&nbsp;
[05:30] of interest, full profits when it becomes cheap. So this is the basics of what volume profile is,&nbsp;&nbsp; and I even gave some hints on how to use&nbsp; it, but now its time to go over an actual&nbsp;&nbsp; strategy that you can use right now. And for this example, we ll use AMD&nbsp;&nbsp;
[05:46] as its been pumping recently and&nbsp; a lot of people are trading it. &nbsp; And if you used the volume profile, you&nbsp; could have entered in before everyone else. &nbsp; The one minute, hour, daily,&nbsp; literally every timeframe. &nbsp;
[06:02] So you can really implement it with&nbsp; whatever strategy you re currently using. &nbsp; But how I like to use, is on larger&nbsp; timeframes to createa strong bias. &nbsp; As these higher timeframe volume profiles will&nbsp; give clear strong levels that institutions&nbsp;&nbsp;
[06:17] we are going to use the weekly timeframe. Now here, amd had a strong uptrend. &nbsp; Now if you were using normal tenchincal&nbsp; analysis, say supply and demand. &nbsp;
[06:29] You would have a demand zone or in other&nbsp; words a support here, here, here, and here. &nbsp; And you wouldn t really know which levels&nbsp; would hold. Or which ones to trade. &nbsp; So you d basically be guessing. But if we add the volume profile, it will&nbsp;&nbsp;
[06:44] tell you exactly where we need to be entering. So grab your volume profile. Mark it from&nbsp;&nbsp; the low to the high of this move. Again, we have our 3 main levels.&nbsp;&nbsp; Our volume area high, our point of&nbsp; control, and our volume area low. &nbsp;
[06:58] Next, you can easily see that price&nbsp; consolidated a lot at the high volume nodes. &nbsp; We had high volume at the point&nbsp; of control, price consolidated. &nbsp;
[07:10] Then you can also see, price spiked&nbsp; up fast, at the low volume nodes. &nbsp; Also, a key reminder, 70% of&nbsp; all trades happened between the&nbsp;&nbsp;
[07:22] volume area high and the volume area low. So in order for prices to be attractive we&nbsp;&nbsp; would want to buy either at volume area low, or&nbsp; below it. As that is signaling prices are cheap. &nbsp; right at our volume area low,&nbsp; which is literally text book. &nbsp;
[07:40] We wait for price to come to our area of demand&nbsp; at our volume area low, we enter the trade here. &nbsp; Price spikes up fast here with a huge&nbsp; 300% move and if you look closely. &nbsp; It literally started right where we entered. But it keeps getting better. &nbsp;
[07:57] Meaning prices are really expensive right now. Which means prices will likely want to revert back&nbsp;&nbsp; to our previous point of control. And what do you think happens? &nbsp;
[08:09] Price literally goes all the way back&nbsp; down, exactly to the point of control. &nbsp; Stops exactly there. Then proceeds&nbsp; to start heading higher again. &nbsp; Hopefully you guys are starting to&nbsp; understand the power of this tool. &nbsp;
[08:22] If you use it on higher timeframes and are&nbsp; patient enough, to wait for the levels to get hit,&nbsp;&nbsp; tool can be insanely accurate. Lets do one more example. &nbsp; Grab your fixed volume profile Mark from the low of the trend,&nbsp;&nbsp;
[08:37] point of control, and our volume area low. Right now price is above our volume area high. &nbsp; Which we could now assume, price is expensive,&nbsp; based on past volume and will want to mean revert&nbsp;&nbsp;
[08:52] wait a bit and that s exactly what happens. But since price came all the way down and is&nbsp;&nbsp; now past our value area low, we now know price&nbsp; is considered cheap based on past volume. &nbsp;
[09:05] So this time, we enter a long. And yet again, prices spikes up immediately&nbsp;&nbsp; exactly from this point. With a 888% move. &nbsp; I am not making this up. This&nbsp; tool works extremely well. &nbsp;
[09:19] This tool does absolute wonders. And right now we are using just this&nbsp;&nbsp; tool by itself. It becomes even more powerful when&nbsp; you add other confluences like supply and demand,&nbsp;&nbsp; if you are not using the volume profile. If you got some value from this video,&nbsp;&nbsp;
[09:34] I d 100% recommend joining my&nbsp; telegram. It s completely free&nbsp;&nbsp; to join and I share value just&nbsp; like this in there all the time. &nbsp; Thanks for watching, and ill see&nbsp; you guys, next time.