And so, the past Volume Profiles can tell us a lot. And if we really want to get a broad view, this is kind of a more a dynamic style of view. We can look at it through the visible range, which will just tell us everything on the chart that is currently visible, it will form that Volume Profile. Sometimes this is a little easier to see the kind of a larger picture view.

And if we want to go just from the all-time high here, we just trade our screen over until we are about right there. And so, this is the Volume Profile of the all-time high set on December 15th to now. So, that is the point of control on this large swing, from this swing high to where we currently are.

Profile types

If we ever saw price trading back up to or that zone, if we look above us, all of this price activity, very, very, very open. Not a lot there. So, this is a pretty interesting way to look at it.

So, it is going to be much easier for price to move lower than it is to move higher. That was just a little intro, and look at Volume Profile and how it can be used in your trading. I hope you found this video very informative and useful and look forward to talking with you in our next videos.

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Sometimes, there were situations when I needed to have a closer look at some area but I wasn't able to, and I wasn't sure how the volumes in that particular area were distributed. I marked two areas there: area A and area B. With the standard Daily profile, we aren't able to tell how much volumes were distributed in area A nor in area B separately. If I were interested for example only in volumes within area B, then I wouldn't be able to see them with the standard Daily profile.

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This is exactly the problem I had. For this reason, I developed a Flexible Volume Profile, which takes care of this issue. With the Flexible Volume Profile, I can select any area in the chart that I am interested in and see precisely how the volumes were distributed within this particular area.

Flexible Volume Profile is quite a versatile tool because you can use it for any timeframe you want. From tick or 1-minute to monthly charts. You can also use it with any trading instrument you want. You can use it for example for forex, stocks, indexes, gold, oil, cryptocurrencies, futures. A great thing about the profile is that it is an extremely versatile tool and no matter what instrument or timeframe you trade, the logic and the setups are still the same. Volume Profile trading setupsNow, I am going to show you trading setups that I use in my everyday trading.

Those are the main, core setups that I use. I never enter a trade if there isn't one of those setups present. All the setups can be used with any timeframe. I prefer minute charts for intraday trading, minute or Daily charts for swing trading and Daily to Monthly charts for planning longterm investments.

Volume Profile vs Regular Volume

Volume Setup 1: Volume accumulation setupAs I said previously in this book, the big institutions who move and manipulate the market build up their massive trading positions in sideways price action channels rotation areas. After they accumulate enough volumes -meaning after they fully enter their positions, then they initiate strong and aggressive buying or selling activity to move the price. They strive to move the price in the direction of their newly accumulated positions. Based on this, we know, that if there was a sideways price channel followed by significant uptrend, strong buyers were accumulating their buying positions in the price channel.

If, on the other hand, there was a sideways channel followed by a strong sell-off, then we know, that strong sellers were entering their selling positions in the channel. Here is an example of strong buyers entering their positions in rotation area:Here is an example of strong sellers entering their positions in rotation area:Now you know in which area strong buyers or sellers entered their positions. It is time to use the Flexible Volume Profile to look inside this area to see exactly at which price level the volumes were the heaviest.

This will be the place where most positions were accumulated. In this case, the heaviest volumes within the rotation area were at 1. Now you see where the volumes of the strong buyers were the heaviest. You only need to mark the exact level in this case 1. When it hits the level, you enter a long position from this level. No need to wait for any sort of confirmation.

Value Area Trading Strategy

There are two reasons factors why the price reacts to the volume zones so well. This reasoning doesn't apply only to the setup 1, but also to all the other volume setups I am going to show you later. This means that strong buyers start aggressive buying activity to drive the price upwards again.

Strong sellers defend their short positions by aggressive sell-off which moves the price lower again. Here is a picture to demonstrate this long trade scenario :Short trade scenario would look the same, only reversed. Let me demonstrate this on an example: First, strong buyers accumulated their positions in a sideways rotation.

Then they pushed the price aggressively upwards this is the long scenario of Setup 1. After that, the buyers stopped pushing the price upwards for a while and sellers took over. They were pushing the price lower and lower, but when they approached the strong rotation where the strong and aggressive buyers accumulated their massive positions, the sellers stopped their selling activity and got rid of their selling positions.

Because they didn't want to risk a fight with strong and aggressive buyers. When somebody who is in a short position wants to quit their position, he buys. So when those sellers start to buy to get rid of their selling positions, they drive the price upwards. Volume Setup 2: Trend setupI trade the Trend setup when there is a strong trend. The strong trend indicates that one side of the market -buyers or sellers is much more aggressive than the other.

In an uptrend, strong and aggressive buyers are pushing the price upwards. In a downtrend, strong and aggressive sellers are pushing the price downwards. If you look at the volumes accumulated within the trend area, you will notice that the Volume Profile is pretty thin. That's because there usually aren't that many volumes accumulated in trends. The reason for that is that the price is moving too fast for the institutions to build up their positions there.

However, there are usually places within the trend, where the price stopped moving rapidly for a while, slowed down, and the market participants were able to add some into their positions. Such action creates a "volume cluster" within the trend. It is important that the volume cluster is created within the trend and that the trend continues after that.

This way we can assume, that the volumes created within the volume clusters were volumes that the aggressive market participants were adding to their current positions. The volume cluster created within the trend shows the place where the volumes were the heaviest. With the Trend setup, you only need to mark the exact level where the volumes were the heaviest within the volume cluster and wait until the price reaches the level again.

When it does, then you simply enter your trade in the direction of the trend. If there was an uptrend, you enter a long position.

Essential Strategies for Trading Volume

If there was a downtrend, then you enter a short position. There is no need for any sort of confirmation. You enter the trade at the first touch. Let me demonstrate this on a trade I am in right now. There were three strong rejections of a level marked in blue. Such a situation indicates that the level was a really strong support. When the price went past this support, it became a resistance. This is the "Support becoming resistance" setup that I wrote earlier in the book. Along with that, there was also the Volume Setup 2: Trend setup. In the picture, there is a significant volume cluster created within the strong trend area black rectangle.