Video Transcript:
Have
you ever looked at a chart and wondered what is really happening beneath the
surface? In this video, I’ll show you how to uncover the hidden truth behind
market moves using Volume Profile. We’ll break down the four most important
Volume Profile shapes: the D-shaped profile, the P-shaped profile, the B-shaped
profile, and the thin profile, and discover what they reveal about market
sentiment, institutional activity, and, most importantly, key trading
opportunities you can take advantage of. You’ll learn exactly how to trade each
shape effectively, how to spot areas for high-probability trades, and how to
track the footprints of big institutional traders. Plus, I’ll share my favorite
trading setup. So let’s get started with a little quiz to see where you are at
right now.
Here’s
the first question: take a look at this profile right here and tell me—will the
price go up or down? Let me show you. After a little rotation, the price went
downwards, and the reason was that this profile was a B-shaped profile, which
indicates that sellers are in control and pushing the price downwards. Got it?
Let’s move on to the next question.
If
you spot this on the chart, what should your plan for the next day be? What is
the key area to trade from tomorrow? The key area to trade from here was this
significant volume cluster, which formed within this downtrend. This is what’s
called a thin profile, and those volume clusters are very important, especially
in a thin profile. As you can see, the price reacted very nicely to it. That’s
how you trade the thin profile.
Now,
here’s the next question: if you see something like this, what should you
expect the market to do tomorrow? Let me show you. This was a D-shaped profile,
so you expect the market to rotate and react to this zone and this zone. That
means you should short from here and go long from here.
Here’s
the last one: take a look at this Volume Profile. What should you expect to
happen the next day—should the price go up or down? This one is tricky. Let me
explain why. This profile corresponds with the letter P, but it’s not actually
a proper P-shaped profile because the price is closing below 50% of the daily
range. That’s why, in this case, the price didn’t go up as it should after a
proper P-shaped profile but instead went downwards.
If
you haven’t understood everything I just showed you, don’t worry—there’s
nothing to be afraid of. You’re here to learn, and I’m here to help you. I
promise that by the end of this video, you’ll perfectly understand what I just
showed you, and you’ll be able to immediately put this into action.
I
haven’t properly introduced myself, so let me do that briefly. I’m Dale, and
I’ve been trading since 2008. I founded my website, Trader Dale, around eight
years ago. On my website, I teach traders how to trade using Volume Profile,
Order Flow, and VWAP. I’ve written four books on trading: Volume Profile:
The Insider’s Guide to Trading, Order Flow: Setups, VWAP: The
Insider’s Guide to Trading, and a book on stock investing. The main reason
you should trust me and spend your time with me is that I deliver results.
Since 2016, I’ve been publishing trade predictions on TradingView. So far, I’ve
made almost 1,500 predictions there, and if you review them, you’ll see that,
in the long run, my strategy has a 67% win rate without any money management,
position management, or special rules.
You
might think that a 67% win rate isn’t that special because many people claim to
have better results. But can you show me someone who can consistently predict
where the market will turn for nine years? Apart from my trade predictions, you
can also check out what our members say about our service—either on Trustpilot, where
we have many fantastic five-star reviews, or on our website, where you can find
video testimonials.
Still
with me? Let’s talk about Volume Profile. Volume Profile is a professional
trading tool, and not many retail traders use it, though many professionals do.
Its uniqueness lies in its ability to track big trading institutions through
volume analysis. When you look at Volume Profile, the wider the profile, the
more interest there was in trading at those price levels. Conversely, thin
parts of the profile show where little trading occurred, indicating less
interest.
A
Volume Profile forms different shapes based on how volumes are distributed
throughout the day. These shapes can tell us a lot about market sentiment and
trading opportunities. There are four basic shapes: the D-shaped profile, the
P-shaped profile, the B-shaped profile, and the thin profile. Each shape
reveals key information about the market, and I’ll show you how to trade each
one effectively.
For
example, the D-shaped profile typically indicates balance in the market, often
forming during periods of rotation. The B-shaped profile indicates strong
sellers and is associated with downtrends. The P-shaped profile suggests strong
buyers and is often found in uptrends. Lastly, the thin profile indicates a
strong, one-sided trend with minimal pullbacks, often initiated by macro news.
Trading
each shape requires specific strategies. For instance, in a D-shaped profile,
the point of control and volume bumps serve as key support and resistance
levels. In a B-shaped profile, you would trade from the point of control and
volume bumps, anticipating strong selling pressure. In a P-shaped profile,
you’d look for strong buying signals from key volume levels. And for a thin
profile, volume bumps are critical as they highlight areas where aggressive
buyers or sellers entered the market.
If
you want to learn more about these setups in detail, I’ve written a
comprehensive guide available for free on my website. You can also find a
printed version on Amazon.
Finally,
if you’d like to learn my strategy from A to Z, consider becoming a member.
Membership includes a 15-hour Volume Profile course, my personal day and swing
trading levels, custom indicators for platforms like NinjaTrader, TradingView,
and MetaTrader, and tech support to help you set everything up.
Thanks
for watching! If you have questions, email me—I’m here to help. Happy trading!
Boa noite. Meu nome é Bruno, sou do Brasil e uso em minhas plataforma, perfil de volume Vwap. Obrigado por compartilhar seu conhecimento, me ajudou a tirar uma duvida… Abraço!
Excellent explanation