How to trade Volume Profiles - a quick guide
This is a quick summary of my Entry Models class I hosted last week in @Chroma_Trading! Next one will be today, so make sure you don't miss it for more explanations and answers to all of your questions 🩷
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This is a quick summary of my Entry Models class I hosted last week in @Chroma_Trading! Next one will be today, so make sure you don't miss it for more explanations and answers to all of your questions 🩷
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How to draw the volume profile
You can find the indicator called "Fixed Range Volume Profile" in the same tab as the Long / Short tools.
Draw it from the start of the range you want to analyze.
Also, make sure to use the following settings:
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You can find the indicator called "Fixed Range Volume Profile" in the same tab as the Long / Short tools.
Draw it from the start of the range you want to analyze.
Also, make sure to use the following settings:
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What is a Value Area?
The VA is the range where 68% of the volume was traded in that range.
Value Area High (VAH) acts as resistance because sellers are stronger than buyers
Value Area Lows (VAL) acts as support because buyers are stronger than sellers
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The VA is the range where 68% of the volume was traded in that range.
Value Area High (VAH) acts as resistance because sellers are stronger than buyers
Value Area Lows (VAL) acts as support because buyers are stronger than sellers
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Trading Setup 1
Wait for a deviation at one side
Wait for price to re-enter the VA with a BoS
Entry at the retest inside an imbalance
Target the liquidity at the other side
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Wait for a deviation at one side
Wait for price to re-enter the VA with a BoS
Entry at the retest inside an imbalance
Target the liquidity at the other side
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Trading Setup 2
Wait for a deviation at one side
Wait for price to re-enter the VA
Immediately enter at the limits of the VA
Target liquidity inside the VA
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Wait for a deviation at one side
Wait for price to re-enter the VA
Immediately enter at the limits of the VA
Target liquidity inside the VA
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Pairs to Trade
$BTC works the best with Volume Profiles because it has the most volume - it's logical
The higher the volume and thus the timeframe too, the more the VA gets respected
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$BTC works the best with Volume Profiles because it has the most volume - it's logical
The higher the volume and thus the timeframe too, the more the VA gets respected
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Pairs to Trade
Forex? Although it should work in theory because of high volumes, for some reason I never met anyone using VP in forex.
Altcoins? Maybe, but just the big market cap altcoins with high volume. Here you can see an example on $SOL
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Forex? Although it should work in theory because of high volumes, for some reason I never met anyone using VP in forex.
Altcoins? Maybe, but just the big market cap altcoins with high volume. Here you can see an example on $SOL
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Rules to follow
- no trade if liquidity at SL
- only trade after price re-enters the VA
- don't trade near the Point of Control (level with the most volume traded)
- only use these trading ideas when price is ranging
- trade liquidity, not VP levels, use them as confluence
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- no trade if liquidity at SL
- only trade after price re-enters the VA
- don't trade near the Point of Control (level with the most volume traded)
- only use these trading ideas when price is ranging
- trade liquidity, not VP levels, use them as confluence
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Backtest results:
Pair: BTC
Timeframe: m5, m15
Trades: 10
Wins: 9
Profit : 18.6R
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Pair: BTC
Timeframe: m5, m15
Trades: 10
Wins: 9
Profit : 18.6R
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As always with these threads, if you have any questions don't hesitate to ask me!
Each week I present a new setup in @Chroma_Trading in a 1h long VC. Honestly, this posts only scrap the surface, I can only present the nuances that make you profitable within such classes.
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Each week I present a new setup in @Chroma_Trading in a 1h long VC. Honestly, this posts only scrap the surface, I can only present the nuances that make you profitable within such classes.
10/10
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